German engineering production to fall further in 2024- VDMA association
12/09/2023 08:00
BERLIN, Sept 12 (Reuters) - Germany's engineering
association (VDMA) expects production in the sector to extend
its decline next year, falling 2% dragged by weak orders
domestically and abroad, its Chief Economist Ralph Wiechers
said.
Wiechers confirmed VDMA production forecast for 2023 of a 2%
drop, adding that losses in the second half of the year would
eat up the 1.7% growth recorded in the first six months.
"2024 will be a kind of transition year," Wiechers told
Reuters.
High interest rate combined with persistent inflation were
clouding investors mood, in addition to the consequences of the
Ukraine war and tensions between China and the United States.
German exports to China grew by 4.4% in the first half of
the year but growth was still significantly less than in the
United States where sales rose by 21.6%.
"China is an underperformer," he added.
(Reporting by Tom Kaeckenhoff; Writing by Riham Alkousaa;
Editing by Tomasz Janowski)
((Riham.Alkousaa@thomsonreuters.com; Twitter: @RihamKousa;))