Monthly bulletin May 2017 Monthly bulletin | Economic and statistic affairs

Incoming orders in Germany Mechanical engineering Surge in growth in Europe In March, incoming orders in the German mechanical engineering sector were down slightly (by four percent) from the previous year. Though this may sound like a paradox, it is a satisfying result. Domestic orders rose by 10 percent. Orders from the EU partner countries even grew by an impressive 19 percent. The actual surprise comes from incoming orders from non-euro countries. In those countries, large industrial plants resulted in an unusually high order volume in March 2016, which was missed by only 16 percent in March 2017. For the first quarter, a real increase of 1 percent in orders was recorded despite the high basis of comparison. Monthly bulletin | Economic and statistic affairs May 2017

Production of German mechanical engineering During the first two months of the year, production was 2.6 percent higher, according to preliminary calculations, than the previous year. This means the year 2017 started out successfully. After all, the forecast made by VDMA economists in October 2016 for 2017 predicts a one-percent growth in production in real terms. On the positive side is the good business climate that prevails almost everywhere in the world. However, there are also several burdensome factors. Nonetheless, VDMA stands by its forecast. Monthly bulletin | Economic and statistic affairs May 2017

Capacity utilization in German mechanical engineering At 85.6 percent, the capacity utilization in April fell slightly short of the long-term industry average. This means the utilization rate has risen slightly since October 2016 after it had stagnated at the bottom end of a still-tolerable level since the end of 2012, with an exception in the fall of 2014. This development is in line with the production curve, since it also displayed a moderate upward tendency since the fall of last year. The absolute low in the period since 2012 was recorded in July 2016 at 83.3 percent, the highest result was 88.0 percent in April 2012. Monthly bulletin | Economic and statistic affairs May 2017

Employees in German mechanical engineering In February the number of staff in the German Mechanical Engingeering industry amounted to 1.007 million, which is 0.3 percent more than the year before. Due to a large production entity whose classification has been changed to an industry group not part of mechanical engineering, the employment figure has been downsized by more than 9'000 employees in 2016. The revised figures for the year 2016 are therefore no more comparable to former years. Monthly bulletin | Economic and statistic affairs May 2017

German machine export German machinery exports exceeded the previous year’s by a nominal 1.1 percent in February 2017. The slightly more stable three-month comparison from December to February (compared to the same period the previous year) shows a plus of 4.6 percent. With plus 3.8 percent, Europe (EU and otherwise) developed at a similar pace, with only the EURO zone (excluding France) moving more quickly with plus 4.1 percent. Russia caught up with 6.9 percent, while Turkey fell behind with 8.5 percent. Orders from China were up by 7.5 percent, as were those from the USA with 2.6 percent and Mexico with 8.2 percent. Orders from Southeast Asia increased by 4.7 percent, orders from Australia by 9 percent. In the MENA region, Egypt and Iran accelerated growth by high double-digit figures. Monthly bulletin | Economic and statistic affairs May 2017

Incoming orders in Germany for selected subsectors In the last three statistically verifiable months (January – March 2017), 24 of the subsectors (which are taken into account separately in the VDMA incoming order statistics) experienced an increase compared to the previous year. Four subsectors recorded growth of 30 percent and more, including textile machinery, mining, agricultural machinery and robotics and automation. Liquid pumps, foundry machinery, food processing and packaging machinery and power systems (turbines), on the other hand, suffered losses. Monthly bulletin | Economic and statistic affairs May 2017

Business situation and expectations Manufacturing industry in Germany In the manufacturing sector, the index fell slightly in April. Manufacturers are nevertheless more satisfied with their current business situation this month. After increasing sharply last month, their business expectations, however, are somewhat less optimistic. Monthly bulletin | Economic and statistic affairs May 2017

Economic situation of German mechanical engineering Monthly bulletin | Economic and statistic affairs May 2017

Contact. Dr. Ralph Wiechers VDMA Volkswirtschaft und Statistik Lyoner Str. 18 60528 Frankfurt Phone +49 69 6603-1371 E-mail ralph.wiechers@vdma.org Monthly bulletin | Economic and statistic affairs May 2017