Berlin - Orders for Germany's key machinery and mechanical engineering industry plunged 42 per cent in January, data released Wednesday showed, as the global recession tightened its grip on Europe's biggest economy.

Germany's Machinery and Mechanical Engineering Association (VDMA) said the fall came after a 31-per-cent slump in domestic orders and a 47-per-cent drop in foreign orders.

In the three months between November and January, the association said orders fell 38 per cent compared to the same period a year earlier with the industry having chalked up record business during the first months of 2008. (dpa)