German engineering orders drop 6% in April, hit by tariff uncertainty

FRANKFURT, June 4 (Reuters) - German plant and equipment makers saw a 6% drop in orders in May, the VDMA lobby group said on Wednesday, blaming the slump on U.S. President Donald Trump's tariff policies and the resulting market uncertainty.

Domestic orders fell in April by 4% and foreign orders by 7%, with non-euro zone countries contributing to a particularly sharp decline of 13%, engineering sector association VDMA said in a statement.

"Uncertainty remains at a high level worldwide and is causing a reluctance to invest," VDMA economist Johannes Gernandt said in a statement.

Orders during the less volatile three-month period from February to April were up 2%, with a 1% rise reported in domestic orders and a 2% gain from abroad, the association said.