VDMA Machinery Orders Confirm Ongoing Industrial Weakness

VDMA Machinery Orders for November came in at -13% Y/Y (vs -5% prior) in volume terms and -12% on the less volatile 3M measure compared with the same period in 2022 (vs -13% prior).

• This is the 14th consecutive drop on a Y/Y basis. Looking at a geographical split, the decrease seemed broad-based with domestic orders decreasing -15% Y/Y and foreign orders at -13%.
• "A bottoming out to end this downturn is not yet in sight, as our customers worldwide would first have to regain confidence in foreseeable growth and stable political processes", VDMA comments.
• Indeed the data appears to confirm the view of ongoing weakness in German economic conditions suggested by recent data. VDMA machinery orders are more volatile versus the more high-profile and broader category of factory orders (which data out this week showed fell -4.4% Y/Y in Nov). Both however point towards industrial weakness in Q4 2023.

MNI, VDMA