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German machinery and tool orders fell short three percent in real terms of last year’s result. Domestic business surged by ten percent, international business slumped by nine percent.
According to the less volatile three-month comparison, May to July 2013, incoming orders fell by four percent on a year earlier. Domestic orders dropped by three percent, foreign orders by five percent, the German Engineering Association (VDMA) reports.

“In a rather reluctant economic environment, July saw German investments in machinery and plants up ten percent compared with the previous year. Such movements are by no means unusual, in particular after a row of weak months. There is good reason to be sceptical whether July marks the beginning of the long-awaited turning point. However, at least the contracting foreign demand could be largely compensated,” VDMA Chief Economist Dr. Ralph Wiechers said when interpreting the result.

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