German machine tool orders expected to stop falling by mid-2009

Hannes Hesse, managing director of the German Machinery Industry Association (VDMA), said that the current decline in machine tool orders in Germany will end in mid-2009. VDMA has revised its forecast for the trend of machine tool orders for the whole year from a previous decline of 7% to a decline of 10% to 20%. In February, German machine tool orders fell by 49% year-on-year, of which domestic orders fell by 45% and overseas orders fell by 50%. In the first quarter, the total number of machine tool orders fell by 70% year-on-year, of which domestic orders fell by 71% and overseas orders fell by 70%. The VDMA is now seeing some hopeful signs, believing that by May at the latest, the annual rate of decline in machine tool orders will begin to narrow. Hesse said, 'The global economic stimulus plan should gradually take effect and bring a positive boost.' VDMA quoted a recent research report saying that the greatest growth potential is the Asian market, which will mainly focus on infrastructure, energy Production and energy saving industries.