German mechanical engineering: export surge towards end of half year
Mechanical engineering is one of Germany’s most important export sectors. An increase of 6.8 percent in June has given it a boost.
Frankfurt/Main (dpa) – Buoyant exports in June lent tailwind to Germany’s mechanical engineering sector and limited the decline in exports seen in the first half year. From January to June, machinery and equipment worth 99.3 billion euros were exported, announced industry association VDMA in Frankfurt. This meant that exports nominally dropped by 0.8 percent compared to the same period last year, the price-adjusted fall amounting to 2.5 percent.
“Geopolitical tensions, the US tariffs policy and persistently weak business with China weighed on machine exports in the first half of the year,” said VDMA economics expert Anke Uhlig. However, a largely stable second quarter and a pronounced export increase of 6.8 percent in June dampened the fall in the first half year, she added.
Admittedly, President Donald Trump’s tariffs policy and the strong euro slowed business with the US. Nonetheless, exports in the first six months were able to gain by 0.5 percent to just shy of 13 billion euros thanks to a stabilisation in the second quarter.
By contrast, exports to China slumped by nearly 14 percent to a good seven billion euros in the first half year. Business with the EU grew slightly by 1.3 percent thanks to key markets such as France and the Netherlands.
