German Machine Tool Orders Jump 15% in Q1 as Output Falls 11%
Frankfurt am Main – October 31, 2026 -- German machine tool orders rose 15 percent in the first quarter of 2026, the first notable upturn after three difficult years, while production fell 11 percent to EUR 2.8 billion, according to the VDW (German Machine Tool Builders' Association).
VDW chief economist Bernhard Geis said the trough has probably been passed but a clear trend reversal is still some way off. The coming months will show whether the recovery holds. Higher uncertainty and costs linked to the Middle East conflict are weighing on investment appetite.
Domestic and foreign orders rise 18 and 14 percent from a weak base
Domestic orders grew 18 percent and foreign orders 14 percent. The VDW cautions that the figures are only partly reliable: the starting level is low, especially in Germany, and one-off orders and project business play a major role. Service and retrofit business continue to stabilize the sector.