German machinery exports are growing despite trade difficulties
German exports of machinery and equipment showed a year-on-year upward trend in June, and the US punitive duties caused less damage to transatlantic exports than expected, according to the VDMA Mechanical Engineering Association. Exports in June increased by 6.8% compared to the same period last year and contributed significantly to the mixed first half of the year, Kallanish understands. The VDMA cautioned against taking this as a positive outlook, given the many unpredictable geopolitical factors. The Association noted that the increase does not seem to be related to large orders for plant construction projects, which very often lead to a one-time increase in monthly figures, but do not indicate a trend.
The first half of the year continued to see a nominal 0.8% year-on-year decline and a 2.5% price-adjusted decline. In the first half of the year, exports totaled 99.3 billion euros ($116 billion), while imports reached 47.9 billion euros. The VDMA cites the strengthening of the euro against the dollar and the protectionist trade policy of the United States as negative factors. Nevertheless, exports to the United States remain stable, with a slight 0.5% increase achieved mainly in the second quarter. Exports to China decreased by 13.8%, while exports within the European Union increased by 1.3%.
The EU accounted for 45.9% of all German machinery exports, compared with 13.1% in the United States and 7.1% in China. Separate foreign markets that showed particularly strong growth in the first half of the year were India and Canada, which grew by 11.1% and 10.0%, respectively.
Author: Christian Kell Germany
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