Germany’s plastics and rubber machinery manufacturers reported a clear reversal in the order inflow in the second quarter of this year. Although orders rose year-on-year in the first quarter of 2008, at end-June they were 7% below the level recorded a year earlier. ”After years of healthy growth and record output in 2007, the upward trend in German plastics and rubber machinery seems to be over,” according to the Plastics and Rubber Machinery section of the German Engineering Federation VDMA (Frankfurt / Germany; www.kug.vdma.org).

By contrast, the association reported another strong rise of 12.2% in exports in the first six months of this year. Exports of plastics and rubber machinery – especially to Asia and the 27 EU countries – were far higher than last year.

Orders and capacity utilisation are still high, so that full-year sales should increase further in 2008. The association has not altered its June forecast that sales will grow by 8% this year and expects output in the core machinery manufacturing segment to be around EUR 5.6 bn.

However, it acknowledges that the sector will not be able to escape the economic downswing in many markets. Given the downturn in new orders, it assumes that sales will decline in 2009.