BERLIN German engineering companies' order books fell significantly in April, reversing the "small ray of hope" seen in the prior month's figures, the VDMA engineering association said on Monday.

April orders were 20% lower compared with the same month last year, with domestic orders down 15% and foreign orders down 23%, according to the VDMA.

By comparison, there was a 6% drop in orders in March, the first month since September 2022 with a single-digit decline.

"This monthly result reflects the recently deteriorating mood in the economy," said VDMA economic expert Olaf Wortmann.

"As before, the global economic burdens are so great that an improvement in incoming orders is still likely to be lacking."

The Ifo institute's most recent survey of German business morale fell further than expected in May due mainly to a sharp decline in future expectations, adding to the signs that Europe's largest economy is facing stubborn economic headwinds.

The German economy was in recession in early 2023 after household spending in Europe's economic engine finally succumbed to the pressure of high inflation.

APRIL CHANGE

overall -20% y/y

of which German -15% y/y

foreign -23% y/y

FEB-APRIL

overall -14% y/y

of which German -14% y/y

foreign -14% y/y

(Reporting by Miranda Murray, Editing by Rachel More)