German mechanical engineering firms are struggling to gain momentum. In April, total orders remained flat, the German Mechanical Engineering Industry Association (VDMA) announced on Tuesday. While foreign business grew by four percent, domestic orders shrank by seven percent.

'As a result, orders in April remained stagnant overall compared to the previous year,' said VDMA Chief Economist Johannes Gernandt. He noted that developments varied across the mechanical engineering sector's customer industries. 'The example of data centers, which are also equipped by the mechanical engineering sector, shows how individual areas can benefit from a special economic boom, even in Germany.' However, he added that this does not compensate for the growing location-based challenges facing the industry, which can only be resolved through rapid and profound structural reforms.

(Report by Tom Kaeckenhoff, edited by Myria Mildenberger. For inquiries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)