Home / Business and Economy / German Machinery Sector Faces Fourth Year of Decline
German Machinery Sector Faces Fourth Year of Decline
17 Sep
Summary
- German machinery production expected to fall 2% in 2026.
- The industry has seen a 4.1% output drop in the first seven months.
- A 3% growth is anticipated for 2027, marking a potential turnaround.
The German machinery and equipment industry is projected to experience a contraction for the fourth consecutive year in 2026. Production is now forecast to decrease by 2% in real terms, a revision from earlier predictions of stagnation. This downgrade is attributed to the weak output observed this year, with production falling by 4.1% in the first seven months compared to the previous year.
Despite the current downturn, improved order situations and more optimistic business expectations suggest a potential turning point. Price-adjusted orders saw a notable 5% increase in the first seven months of 2026, significantly driven by a 14% surge in demand from non-Eurozone countries. Based on these factors, the sector group forecasts real production growth of 3% for 2027.
