CAPTION: A mechanic positions a part to be machined on a vertical lathe at a German large-diameter antifriction bearing company. (picture alliance/dpa/archive)
Despite the growing uncertainties in global trade, German mechanical engineering companies set another export record last year. The value of exports climbed by 5.3 percent to 177.8 billion euros compared to the previous record year of 2017, the industry association VDMA announced in Frankfurt on Monday.
Measured in terms of production, the export rate thus rose to 79.2 percent. This means that German mechanical engineering generated almost four out of five euros abroad.
The United States remained the most important export market with a volume of 19.25 billion euros, just ahead of China with 19.06 billion euros. Almost half (47.2 percent) of German machinery exports went to the EU, with France as the largest single market.
German companies sold machines worth 7.7 billion euros to Great Britain, an increase of 5.1 percent and equivalent to 5th place. According to VDMA chief economist Olaf Wortmann, there could have been pull-forward effects here immediately ahead of a possible Brexit.
The industry missed the production targets it had set itself for 2018. Among other things, scarce material and a lack of skilled personnel were the reasons for the weak growth of only 2 percent instead of the targeted 5 percent. Many orders can therefore only be processed in the course of this year, so that the VDMA expects a production growth of 2 percent for 2019, even if demand is restrained.
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