In the second quarter of 2025, the German machine tool industry received orders at the same level as the same period last year, with domestic orders falling by 14% year-on-year and foreign orders increasing by 7% year-on-year.

atFrom January to June 2025, orders for the German machine tool industry fell by 5% overall. Domestic orders fell 22% year-on-year, while foreign orders increased 4% year-on-year.

German Machine Tool Manufacturers Association (VDW) said that the main driving force in the first half of this year came from European countries, although the demand level in the German domestic market has not yet recovered. The ongoing uncertainty caused by U.S. tariff policy and many other crises is leading investors to take a wait-and-see approach. While the 15% tariff rate recently negotiated between Europe and the United States has come into effect, it will increase costs and severely dampen German exports to its largest market, the United States. American industry desperately needs German machines because there are no comparable domestic alternatives, but American small and medium-sized businesses, in particular, cannot afford to pay higher prices.

In contrast, Germany's medium-term outlook is becoming clearer. The growth in approved defense and infrastructure spending, as well as the recently adopted investment package, is expected to significantly boost consumer willingness to spend. at all costsIFO Business Prosperity IndexIt shows that confidence in the German manufacturing industry is picking up. The International Purchasing Managers' Index (PMI) also showed that the downturn in the industrial sector has bottomed out. However, this has not yet achieved the expected full recovery. The relevant person in charge of VDW said.

The recovery of the machine tool industry has suffered another setback,The relevant person in charge of VDW analyzed. It is not expected to resume stable growth until 2026. Domestic demand in Germany is expected to be boosted, while overseas business performance may be weaker than previously expected. U.S. tariff policies are hitting its own economy hard. This situation is difficult to form a strong impetus in the short term.