In the fourth quarter of 2013, order bookings in the German machine tool industry fell by six percent year on year, according to the German Machine Tool Builders' Association (VDW). Given the dominance of the German industry in the mechanical engineering sector, data released by the VDW are seen as a barometer for general business conditions in the EU.

Domestic orders in the German machine tool industry in the fourth quarter last year increased by three percent, while export orders were down by 11 percent, both compared to the same quarter of 2012.

In the whole of last year, order bookings in the German machine tool industry fell by six percent year on year. Domestic orders in this period were down by seven percent and export orders fell by six percent, both on year-on-year basis.

In 2014, the sector is expecting order bookings to rise again, by around 10 percent, set to come in equal proportions from Germany and abroad.