Machinery sector doubles growth forecast
7 June 2004FRANKFURT - Amid ongoing strong export performance, Germany's machinery sector said Monday it is now expecting production in 2004 to grow by four percent, double earlier forecasts.
7 June 2004
FRANKFURT - Amid ongoing strong export performance, Germany's machinery sector said Monday it is now expecting production in 2004 to grow by four percent, double earlier forecasts.
The machinery producers' federation VDMA in Frankfurt said foreign business remains the chief pillar for the industry. Domestic demand still had not yet turned the corner.
"Despite our products becoming more expensive due to exchange rate factors, our worldwide customers still cannot do without German machinery," VDMA president Diether Klingelnberg said.
Last year, exports accounted for 70 percent of the German machinery industry's business.
At home, there were encouraging developments, but the demand is mainly due to investments by export-oriented branches of industry, Klingelnberg said. But it did not amount to a general recovery.
"A growth rate of 1.5 percent at home is not sufficient to trigger an investment boom," he said, referring to the projected German economic growth rate.
Klingelnberg also cautioned that the machinery industry remains very susceptible to external factors such as rising oil prices.
The VDMA's increased production outlook follows a few days after latest data from the Economics Ministry in Berlin late last week which showed that German industrial orders in April had surged by 2.5 percent year-on-year. For the March-April period, orders were 11.1 percent over those of the same two months last year.
Subject: German news