According to the latest survey by the VDMA association conducted at the end of March, the mood in the German engineering sector improved slightly at the beginning of 2025, but remains very mixed.
Just over a quarter (27%) of the total 940 companies currently rate the current situation as very good, up from 22% in January, according to [b]Kallanish[/b]. On the contrary, 30% rate the situation as bad or very bad. The outlook has also revived somewhat: almost a third of companies expect the situation to improve in the next six months, and only 22% in January.
However, "this may only be a snapshot," warns Ralf Wiechers, chief economist at the German Engineering union VDMA. The study was completed before April 3, so the latest U.S. tariff announcements and reactions from affected countries are not yet reflected in the results.
As a positive factor, lower interest rates should also have a positive impact on the industry. In addition, the region will also be able to use Germany's special €500 billion fund for infrastructure investments – if bureaucracy and lengthy approval procedures do not slow down the investment climate.
North America, as a market, has lost its position. In January, 42% of companies rated sales opportunities in North America as good or very good. But looking at the next six months, North America received only 29% of responses in March.
Germany, on the other hand, has been able to significantly catch up. Almost a third of companies expect positive domestic business development, up from just 13% in January.
