Sector Developments German machine tool orders slide again in Q3, but near-record output expected for 2012
International demand supports production growth as domestic orders fade, industry association VDW said.
Orders for German machine tools fell 11% in the first three quarters of 2012 versus the year-earlier period, but the industry expects production this year to almost match the record attained in 2008, according to the VDW, Germany’s association of machine tool manufacturers.
The 4% decline in orders in the third quarter was the fourth consecutive quarterly slide and followed a 20% plunge in July-September, the association said. It noted that in the third quarter, domestic orders dropped 12%, but international demand remained at last year’s level.
Even though orders have been falling since the final quarter of 2011, production in the first nine months of this year has increased 12%, so the association has raised its growth forecast for 2012 from 6% to 8%, according to VDW Managing Director Wilfried Schäfer. He noted that the value of production this year would reach nearly €14 billion, which is just below the industry record of €14.2 billion in 2008.