Summary The manufacture of machine tools is a key driver of German industry and exports.
FRANKFURT (AFP) - Falling domestic demand weighed on Germany s key mechanical engineering sector in February, the VDMA industry federation said Wednesday.
The manufacture of machine tools is a key driver of German industry and exports.
In February, overall incoming orders fell by 3.0 percent compared with the same month a year earlier, VDMA said in a statement, with export orders stagnating while domestic orders slumped by 7.0 percent.
Making a three-month comparison to iron out short-term fluctuations, VDMA said overall orders rose by 4.0 percent in the period from December to February.
Foreign orders increased by 6.0 percent in the three-month period while domestic orders stagnated, VDMA calculated.
"Weak domestic demand shows that we mustn t allow ourselves to be dazzled by record exports," said VDMA chief Thilo Brodtmann.
"The weak domestic figures are a warning signal for politicians," he said.
The grand left-right coalition government under Angela Merkel was too focussed on consumption, and not enough on investment, Brodtmann complained, calling on Berlin to create "a climate for innovation."
