Orders in mechanical engineering in Baden-Württemberg rose by 35 percent in real terms in August, supported primarily by foreign countries and the AI boom.
AI-generated summary
The VDMA recently lowered its production forecast for the current year to a decline.
Mechanical engineering in Baden-Württemberg benefited from brisk demand in August.
Real orders increased by 35 percent compared to the same month last year, as the regional association of the VDMA in Stuttgart announced.
Domestic demand climbed by 18 percent.
An increase of 42 percent was recorded in foreign markets, with orders outside the European Union particularly increasing.
VDMA managing director Dietrich Birk warned against euphoria.
Although the increase in orders in August was encouraging, it should be taken into account that the same month last year was particularly weak.
In addition, developments within the mechanical and plant engineering sectors continue to be very inconsistent.
The upward trend has not yet reached the entire industry.
According to Birk, those areas that are currently reporting increasing incoming orders are those that are benefiting from the AI boom.
“For a broad upswing, new growth impulses must be provided through sustainable political reforms.”
According to the association, in the less volatile three-month period from June to August 2026, orders increased by 23 percent compared to the corresponding period last year.
Incoming orders from domestically increased by eight percent, while foreign business increased by 30 percent.
Just two weeks ago, the VDMA lowered its production forecast for the current year to a decline of 2 percent.
After four years of contraction, growth is not expected to return until 2027.
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Growth in mechanical engineering only from 2027 after four years of contraction.
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