Xinhua Finance Frankfurt, September 17 (Reporter Yin Liang) - The German Machinery and Equipment Manufacturing Industry Federation announced on the 17th that the actual output of the German machinery and equipment manufacturing industry is expected to decline by 2% in 2026, which will be the fourth consecutive year of output decline in the industry.

Due to the weak performance of the industry since the beginning of this year, the German Machinery and Equipment Manufacturers Association has lowered its production forecast for 2026 from zero growth to a 2% decline. Data shows that in the first seven months of this year, the actual output of Germany's machinery and equipment manufacturing industry decreased by 4.1% year-on-year, and the capacity utilization rate was significantly insufficient.

The German Machinery and Equipment Manufacturers Association stated that some leading indicators have improved. In the first seven months of this year, industry orders adjusted for price factors increased by 5% year-on-year, with orders from countries outside the eurozone growing by 14%. Business expectations have also rebounded in the near future.

The German Machinery and Equipment Manufacturers Association stated in a press release that these positive factors are expected to gradually spread to the production side in the second half of the year, but they are not enough to offset the weak performance in the first half. At present, the recovery of the industry is also uneven, and the demand in the German domestic market is still significantly weaker than that in overseas markets.

The German Machinery and Equipment Manufacturers Association predicts that despite facing many challenges, the global economy will remain resilient in 2027, with increased equipment investment and domestic fiscal stimulus measures in Germany supporting industry production. In addition to government investment, private investment activities are also expected to moderately rebound. In this context, the German machinery and equipment manufacturing industry is also expected to experience a turning point in 2027, with an expected actual output growth of 3%.

Johannes, Chief Economist of the German Machinery and Equipment Manufacturers Association; Gelnante stated that the improvement in order situation and the slight rebound in business expectations indicate that production is expected to resume growth in 2027. But to transform it into a sustainable economic recovery, it is necessary to mobilize private capital by improving investment conditions, while re enhancing Germany's competitiveness as an investment and production base.

Editor: Wang Shurui