economic situation
The slump in orders in the electrical industry continues
Germany’s electrical and digital manufacturers have recorded significantly fewer orders so far in 2024 than in the previous year. The outlook is bleak. At least there is a small glimmer of hope.
The order situation in the German electrical and digital industries remains tense. In September, 5.3 percent fewer new orders were received than a year earlier, as the industry association ZVEI in Frankfurt announced. ZVEI chief economist Andreas Gontermann viewed the fact that the decline was at least only about half as high as the average of the previous eight months as a small positive sign.
However, the annual balance so far has been negative: in the first three quarters of the current year, incoming orders were 10.2 percent below the value for the same period last year. Domestic companies recorded a decline of 11.9 percent, while 8.8 percent fewer orders were received from abroad. Two of the most important markets for the industry are weakening: China and Germany. In the home market, companies complain about, among other things, high energy prices, high taxes and too much bureaucracy.
The price-adjusted production of electrical and electronic goods in Germany is also declining and was below the level of the respective period of the previous year both in September 2024 (minus 9.6 percent) and in the first nine months (minus 9.8 percent). According to the latest forecast, ZVEI expects a production decline of seven percent for the year as a whole.
ZVEI: Order intake 09/2024 ZVEI production forecast October 15, 2024
dpa
Source: Stern
