Latest news with #VDMA
Yahoo
06-08-2025
- Business
- Yahoo
German engineering firms see lower orders as tariff concerns persist
German mechanical engineering companies experienced a drop in new orders in the second quarter of the year as firms awaited the impact of US tariffs, the German Mechanical Engineering Industry Association (VDMA) trade group said on Monday. Despite strong demand from the eurozone, the second quarter saw a price-adjusted decline of 2%. However, thanks to a strong start, real order values still grew by 1% in the first half of the year, according to the VDMA. "This growth is solely attributable to rising demand from the eurozone countries and should be a positive sign that Europe is indeed in the process of strengthening its own position," said VDMA chief economist Johannes Gernandt. While orders from the eurozone rose by 19% in the second quarter compared with the same period last year, they were unable to offset the lower demand from the domestic market and non-eurozone countries, where orders were down 1% and 9% respectively. In June, companies received 13% fewer orders from outside the eurozone compared to the previous year. Overall, the month ended with 5% fewer orders than a year ago. The VDMA experts attribute the decline to the tariff dispute with the United States. The effects of the planned 15% tariff on EU exports to the US - agreed at the end of July - cannot yet be estimated, the group said. "At least companies now have planning security, which has been bought at a high price - provided the 'deal' holds," Gernandt said. Sign in to access your portfolio
Yahoo
04-08-2025
- Business
- Yahoo
German engineering orders fall 5% in June on tariff uncertainty
BERLIN (Reuters) -German engineering orders fell 5% in June compared with a year earlier, with dips in both domestic and foreign demand reflecting uncertainty caused by trade tensions, engineering association VDMA said on Monday. Domestic and foreign orders both decreased by 5% in June, with a 16% surge in demand from euro zone countries offset by a 13% fall from outside the currency bloc, the VDMA said in a statement. In the April-to-June quarter, orders fell 2%, primarily due to the tariff dispute between the United States and the EU, said the VDMA. "It is not yet possible to estimate what impact the now planned 15% tariff on imports into the U.S. will have on mechanical engineering," VDMA chief economist Johannes Gernandt said of the trade deal that was agreed late last month. "At least companies now planning security, albeit at a high cost - if the 'deal' holds," added Gernandt. The first six months of the year, by contrast, had seen a slight increase in real terms of 1%, which Gernandt attributed to rising demand from countries within the euro zone. This is "likely a positive sign that Europe is truly strengthening its position as a business location," he added. CHANGE JUNE overall -5% y/y of which German -5% y/y foreign -5% y/y -2% y/y APRIL TO JUNE of which German -2% y/y foreign -1% y/y Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
04-08-2025
- Business
- Reuters
German engineering orders fall 5% in June on tariff uncertainty
BERLIN, Aug 4 (Reuters) - German engineering orders fell 5% in June compared with a year earlier, with dips in both domestic and foreign demand reflecting uncertainty caused by trade tensions, engineering association VDMA said on Monday. Domestic and foreign orders both decreased by 5% in June, with a 16% surge in demand from euro zone countries offset by a 13% fall from outside the currency bloc, the VDMA said in a statement. In the April-to-June quarter, orders fell 2%, primarily due to the tariff dispute between the United States and the EU, said the VDMA. "It is not yet possible to estimate what impact the now planned 15% tariff on imports into the U.S. will have on mechanical engineering," VDMA chief economist Johannes Gernandt said of the trade deal that was agreed late last month. "At least companies now planning security, albeit at a high cost - if the 'deal' holds," added Gernandt. The first six months of the year, by contrast, had seen a slight increase in real terms of 1%, which Gernandt attributed to rising demand from countries within the euro zone. This is "likely a positive sign that Europe is truly strengthening its position as a business location," he added.
Reuters
23-07-2025
- Business
- Reuters
Germany's offshore wind roll-out stalls in H1, lobbies want auction design reforms
FRANKFURT, July 23 (Reuters) - Germany left installed offshore power wind capacity unchanged in the first half of 2025 and industry groups on Wednesday urged the government to introduce improved auction measures this year to ensure more turbine additions. As of June 30, 2025, the country had 9.2 gigawatts (GW) of installed offshore capacity, unchanged from Dec. 31, 2024, but 1.9 GW of new turbines are under construction, said consultancy Deutsche WindGuard, commissioned by the lobbies to gather data. "Offshore wind energy plays a central role in the success of the energy transition," said a statement signed by six wind and engineering groups including VDMA Power Systems and German wind energy association BWE. "The industry must be able to rely on maintaining the expansion target of 70 GW by 2045," it added. Closer in time, a target of 30 GW by 2030 is theoretically enshrined in law. Germany wants to derive 80% of its power consumption from renewables such as wind and solar energy by 2030, compared with 54% reached in the first six months of 2025, of which offshore wind accounted for 5%. Some 3.6 GW of offshore wind capacity has received final investment decisions and a further 17.5 GW have been awarded permits but not been allocated by investors, WindGuard's research showed. But the lobby groups said that for these plans to materialise, the industry needs Europe-wide aligned revenue models, and longer realisation horizons, at least 12 months rather than six, in reflection of longer sourcing and construction times. An overhaul of the auction design should also consider introducing Contracts for Difference (CfDs), which are fixed-price power contracts that guarantee long-term revenue streams. Developers were unhappy with risks related to bottlenecks in supply chains and to "overplanting," a method to allocate proportionally more generation capacity to transmission lines in order to better utilise connecting cables, they said. Overplanting was too rigid and developers should be allowed more flexibility tailored to individual sites, they said.
Business Recorder
16-07-2025
- Business
- Business Recorder
US tariffs of 30% would dent, not stop, German growth, says IMK
BERLIN: U.S. tariffs of 30% on imports from the EU, planned by President Donald Trump, could cost the German economy about a quarter of a percentage point in growth this year and next compared with current forecasts, the IMK institute said on Wednesday. Trump has said he will impose 30% tariffs on imports from the EU from August 1 if there is no progress on trade talks. That would mean zero growth this year and 1.2% growth next year in Germany, Europe's biggest economy, according to the IMK institute. This compares with its previous forecast for a recovery from the fourth quarter and average growth of 0.2% for 2025, rising to 1.5% next year, driven by a planned boost in public investment and defence spending. 'A rapid implementation of the plannd public investment offensive could significantly reduce the economic risks in Germany,' said IMK. 'Growth losses in the U.S. would be far greater than in Germany,' it said, adding the U.S. was until last year the most important export market for Germany, with an almost 10% share. More than half of Germany's export-reliant engineering companies do not expect nominal sales growth this year, with 30% even expecting a decline, due to simmering trade tensions, the VDMA industry association found in a separate survey. Despite the trade disputes, nearly one in three firms rate current sales opportunities in North America as favourable, found the survey of 963 firms conducted at the end of June. 'All in all, the current year is likely to be mixed for the majority of companies, with sales growth not returning until 2026,' said VDMA chief economist Johannes Gernandt. Nearly 60% of companies see nominal growth as possible next year, said VDMA.
