Germany’s VDMA engineering association on Tuesday lowered its production forecast for next year, pointing to fewer new orders as manufacturers burn through their backlog amid a stagnating global economy.
The VDMA said it now anticipates production to decline by 4% in 2024 in real terms, compared to a previous forecast for a 2% drop.
VDMA President Karl Haeusgen said in a statement that a reversal in the trend for new orders was not in sight, with investment activity expected to slow in the United States while remaining stubbornly weak in China.
In 2023, the VDMA expects real production to contract by 1%, up from a previously forecast 2% decline off the back of a strong first half of the year.
“Unlike a year ago, however, the declining order backlog is less and less able to support production,” Haeusgen said of the revised 2024 forecast.
Source : Zawya