The mechanical and plant engineering sector in Germany recorded a further decline in exports in the third quarter of 2024. Over the first nine months of 2024, this amounted to a nominal 5.2% to 150.2 billion euros. Adjusted for prices, exports of machinery and equipment fell by 7.3%.
Accumulation of various factors
"The current decline in exports is the result of an accumulation of overwhelming factors. Weak global demand, geopolitical tensions and trade disputes are all clashing with doubts about Germany's competitiveness as a business location. Maintaining and strengthening our technological leadership requires investment, innovation and sustainable technologies. This combined with improved framework conditions, stronger international cooperation and stable supply chains," warns VDMA Chief Economist Dr. Ralph Wiechers.
Third quarter particularly weak in Europe and America
Exports to the countries of the European Union fell by 11.9 percent in nominal terms in the third quarter compared to the same period of the previous year, further dragging down the already weak result in the first half of the year. For the first nine months, this results in an average decline of 9.2%. The third quarter also led to significantly more negative results in the rest of Europe and in North and Latin America. In particular, industry exports to the USA fell significantly by 4.2% in the third quarter,
Middle East and Near East make noticeable gains
In contrast, machinery exports from Germany fell less sharply in all Asian regions in the third quarter of 2024. In Southeast Asia and Central and South Asia in particular, the decline over the first nine months appears to have at least slowed somewhat. Trade with India also grew solidly in the third quarter, consolidating the previous half-year result of plus 5% over the first nine months. And exports to China were less negative than in the first half of the year, falling by 3.7% in the months from July to September: the cumulative decline in the first three quarters was 4.7%.
In contrast, machinery exports to the Near and Middle East continued to grow strongly in the third quarter (15.3%). They are now showing a double-digit increase for the year to date. However, the region only accounts for three percent of total German machinery exports, emphasizes Dr. Wiechers.