The VDMA recorded a 21% year on year increase in mechanical engineering orders in June and 5% growth for the first half of 2026.

The slightly positive half-year result of order intake is encouraging. However, it needs to be examined in detail due to special effects and significant differences in domestic and foreign business. The need for reform remains high for Germany and Europe.

Companies in mechanical and plant engineering can look back on a slightly positive first half of 2026 in order intake, shaped by special effects from large plant business. Orders in June 2026 exceeded the previous year’s level by 21 per cent in real terms, and for the first six months of the current year, an increase of 5 per cent can be recorded.

“The increase in June is driven by large plant business from non-Euro countries. The Euro partner countries show significant declines in order intake, also because the order intake in June 2025 was exceptionally good. Domestic business remains cautious. The uncertainty and investment restraint due to global crises remains high, and in Germany and Europe, there is a fundamental need for reform for better conditions for companies,” explains VDMA economic expert Anke Uhlig.

In June, orders from Euro countries fell by 17 per cent in real terms compared to the previous year. For domestic business, there is only an increase of 1 per cent in real terms compared to the previous year in the books. In contrast, orders from abroad show a significantly positive trend with an increase of 29 per cent in real terms compared to the previous year (non-Euro countries plus 54 per cent, Euro countries minus 17 per cent).

In the second quarter of 2026, there were 3 per cent fewer orders from domestic sources, while foreign orders recorded an increase of 12 per cent (non-Euro countries: plus 24 per cent, Euro countries minus 15 per cent). This resulted in an order increase of 7 per cent from April to June compared to the previous year.

In the first half of 2026, companies in domestic business recorded a decrease in orders of 2 per cent, while foreign orders increased by 9 per cent. Orders from non-Euro countries rose by 16 per cent, while orders from the Euro area fell by 8 per cent. In total, there was an order increase of 5 per cent.

For further details visit https://www.vdma.eu/en/