China Slowdown, ‘Global Turbulence’ Trigger Collapse of Export Orders for German Equipment Makers

Jon Blogosphere, Economy, Market Commentary

‘Ripples are now spreading to other key markets.’
It hasn’t hit overall German exports yet. Year-to-date through August, totalexports are up 6.6% from last year and are expected to set another record by year-end. Exuberance in Germany’s well-oiled export machinery still reigns.
But beneath the surface, German plant and machinery makers are getting slammed by the recessions in Russia and Brazil, the slowdown in China that officially still doesn’t exist, and the ‘turbulence’ in the global markets, according to a report today by the German Engineering Federation VDMA.
The association represents over 3,100 mostly medium-sized companies in the capital goods industry. Mechanical engineering is Germany’s forte. Many of the companies are world leaders. They cover the ‘entire process chain’ in the mechanical engineering sector, according to the VDMA, including:

This post was published at Wolf Street by Wolf Richter ‘ November 2, 2015.