The ZVEI Business Cycle Report (February 2025 edition) shows the trend of the German electro and digital industry in December 2024 and in the twelve months of the last year. The data highlight the difficulties of the present time with negative percentages for various indicators. However, performance abroad is better than on the domestic market.
New orders continue to decline
New orders in the German electro and digital industry continued to decline in December 2024. Overall, they failed their pre-year value by 19.5%. The recent decrease was about twice as high as on average in the eleven months before. However, the various sub-sectors developed very differently in December. Perhaps a glimmer of light on the horizon could be that bookings for the usually pro-cyclical branch of electronic components and systems were 19.3% up.
While domestic orders collapsed by 32.1% in December, new bookings from abroad “merely” receded by 8.8% (euro zone clients: -14.4%, third countries: -5.8%).
Hence, in the full last year 2024 incoming orders have been 9.6% down. Once again, the decline in domestic bookings (of 12.9%) was bigger than the reduction in new orders from foreign customers (-6.6%).
Finally, new bookings from the euro area sagged by 8.5% from January through December, as clients from countries outside the common currency area curbed their orders by 5.6%.
Production and capacity utilization
The German price-adjusted production of electrical and electronic goods came in 7.3% lower in December compared to a year earlier. Thus, in the whole year 2024 the sector’s real output was 9.1% down (the figures are still preliminary). According to the ZVEI’s recent forecast, real production could further recede by two percent in 2025.
The capacity utilization ratio within the sector came further down at the beginning of the first quarter of this year compared to the situation three months before – namely from 74.4% to 73.4% of the normal full use level.
At least, the domestic electro companies have raised both in January their production and their employment plans. With it, the balance of firms intending to increase or rather decrease their output within the next three months to come leapt forward from -16 to +2%-age points.
Turnover falls
December 2024 turnover of the German electro and digital industry came to €18.6 billion, leaving it 4.5% lower than a year earlier. Domestic sales receded by 1.7% to €9.2 billion in December, while businesses with foreigners (of €9.4 billion) were 7% down. Sales to euro zone customers and to clients from third countries decreased by 5.5% to €3.2 billion and 7.7% to €6.2 billion, respectively.
For the full last year 2024, aggregated electro sales of €223.2 billion are recorded (data subject to possible later revisions by Destatis). Compared to 2023 this means a decline by 6.2%.
Slightly more than half of 2024’s turnover was generated with customers from abroad – namely €116.3 billion (-5.8%). Domestic sales amounted to €106.9 billion (-6.7%). Eventually, both sales to the euro area as well as to third countries were on the decline last year – the former by 5.9% to €41.4 billion and the latter by 5.6% to €74.9 billion.
The business climate
The business climate has recovered somewhat in January 2025. However, it is still in negative territory. The current economic situation was once more evaluated worse than in December. 13% of the sector’s companies described their present situation as good in January. At the same time, 45% found it rather stable, whereas 42% assessed it as bad.
Looking ahead to the next six months to come, 11% of the German electro firms expect rising businesses. 66% and 23% are awaiting steady or rather decreasing affairs, respectively. However export expectations have been on the rise in January.
 shows the trend of the German electro and digital industry in December 2024 and in the twelve months of the last year.){kind=link}