The international sales markets for machinery and plant engineering continue to develop very differently. This is shown by the results of the current VDMA Business Climate Survey, conducted semi-annually among foreign subsidiaries of member companies in Brazil, China, India, and the USA. India remains the leader in both the current business situation and the outlook. The situation in the USA has significantly improved, accompanied by distinctly positive expectations. Companies in China are looking ahead more confidently despite a subdued business situation, while Brazil continues to face pressure.
India: Confidence also brings more employment
India remains the strongest of the four markets examined. 58 percent of companies rate their current business situation – compared to the first half of 2026 – as good, while only 6 percent rate it as poor. The outlook is also clearly positive: 57 percent expect an improvement in the business situation over the next six months, while only 2 percent anticipate a deterioration. This confidence is also reflected in employment plans: 58 percent of companies intend to increase their workforce, while only 4 percent plan a reduction. 'The recent results underscore the growing confidence of VDMA member companies in India and their long-term commitment to this market. The improved business environment is prompting many companies to go beyond mere market engagement and invest specifically in local manufacturing, capacity expansions, and research and development,' says Rajesh Nath, Managing Director of VDMA India.
USA: Every second company expects further improvement
In the USA, the business situation has also improved significantly compared to the previous half-year. 41 percent of companies rate their current situation as good, while 20 percent rate it as poor. At the same time, expectations are distinctly positive: 51 percent of respondents expect further improvement in the business situation over the next six months, while only 4 percent anticipate a deterioration. Accordingly, employment plans are expansive: 54 percent of companies intend to increase their workforce, while only 3 percent expect a decline. 'The survey results show the most positive assessment of the general business situation in two years, even though delays and geopolitical uncertainties continue to raise concerns,' comments Camille Rowe, National Field Coordinator of VDMA America.
China: Majority sees the situation as 'satisfactory'
In China, the current business situation remains subdued. 21 percent of companies rate their situation as good, 25 percent as poor, while 55 percent assess it as satisfactory. The outlook is more favorable: 35 percent expect an improvement in the business situation over the next six months, while only 11 percent expect a deterioration. Positive signals also prevail regarding employment. 35 percent of companies plan to create additional positions, while 10 percent anticipate a decline in workforce. 'The business situation in China remains mixed, but the expectations of companies are encouraging. On average, the forecast of 10 percent growth for this year remains, even though the differences between the sectors remain significant,' says Claudia Barkowsky, Managing Director of the VDMA Beijing Representative Office.
Brazil: Cautious stabilization, but no revival
Brazil has the weakest current business situation compared to other countries. 22 percent of companies report a good situation, while 30 percent report a poor situation. For the next six months, 33 percent expect an improvement and 15 percent expect a deterioration. Thus, a pronounced revival is not yet in sight. Companies are also more cautious regarding employment: 21 percent intend to increase their workforce, while 17 percent plan a reduction. 'Since May 1, 2026, the EU-Mercosur agreement has been provisionally applied. It strengthens economic relations between Brazil and Europe, especially in light of uncertainties in trade with the USA. However, high interest rates, financing gaps, competition from China, and uncertainty in the election year continue to hinder investments. Our members expect growth again in 2027,' says Fabiane Wahlbrink, head of the VDMA representation in Brazil.
Employment growth strengthens local presence
The planned employment growth is particularly pronounced in India and the USA. More than half of the surveyed companies intend to increase their workforce there. In China, companies with expansion plans also clearly prevail. Thus, machinery and plant engineering companies continue to rely on a strong local presence in important foreign markets. 'Local structures are gaining importance to ensure competitive costs, a good understanding of the markets, and short response times,' summarizes VDMA Chief Economist Dr. Johannes Gernandt.
Background
The semi-annual VDMA Business Climate Survey is based on a standardized survey of foreign subsidiaries of VDMA member companies in Brazil, China, India, and the USA. The current survey took place from September 28 to October 16, 2026, with around 500 companies participating. The results provide important indicators for international market observation in machinery and plant engineering.
Contact:
