German electrical and digital industry records rising orders for the second consecutive month

According to industry organisation ZVEI, headquartered in Frankfurt am Main, Germany, order intake in the German electrical and digital industry increased once again in April 2025, reaching 11.6% above the same month last year.

"This second consecutive rise was primarily driven by large orders," said ZVEI Chief Economist Dr Andreas Gontermann.

As in March, the growth in domestic orders was significantly stronger than that from abroad in April. Domestic orders rose by 22.6%, whereas foreign orders increased by only 3.0%. Orders from the Eurozone grew by 9.0%, while those from non-Euro countries remained virtually flat (minus 0.2%).

In the first four months of this year, new orders in the electrical sector were up by 5.2% compared with the same period in 2024. Domestic and foreign orders developed more or less in tandem (plus 5.3% and plus 5.1% respectively). Orders from the Eurozone increased by 4.1% from January to April year-on-year, while those from outside the common currency area rose by 5.7%.

Meanwhile, price-adjusted production of electrical and electronic goods in Germany fell short of the previous year’s level by 5.4% in April 2025. For the period January through April, industry output was down by 3.1% compared with the first four months of 2024.

Growing sales zu the Eurozone

Revenues of the German electrical and digital industry amounted to €17.9 billion in April 2025, 3.4% below the corresponding value from the previous year. Business with domestic customers lagged more sharply (minus 6.5% to €8.4 billion) than with partners abroad (minus 0.6% to €9.5 billion). While sales to the Eurozone grew by 5.2% to €3.9 billion in April, revenues from third countries declined by 3.8% to €5.6 billion.

In the first four months of the year, aggregate industry turnover totalled €71.9 billion, representing a decline of 1.6% compared with 2024. A slight rise in foreign sales by 1.0% to €38.5 billion was offset by domestic turnover of €33.4 billion (minus 4.6%).

Between January and April, foreign sales were divided between €15.3 billion (plus 1.4%) generated with customers in the Eurozone and €23.2 billion (plus 0.8%) realised with countries outside the common currency area.

Business climate unchanged

The business climate in the German electrical and digital industry remained more or less flat in May 2025. The current situation was assessed as slightly less favourable than in April. At the same time, general business expectations improved somewhat. "However, a larger upward revision following the 'Liberation Day' customs shock in April did not materialise," Gontermann commented. “Probably because the uncertain rollercoaster ride continues."

Caption: The business climate in the German electrical and digital industry remained more or less flat in May 2025. The current situation was assessed as slightly less favourable than in April. At the same time, general business expectations improved somewhat. (Image: Imago)

Source: Electro and Digital Industry Association ZVEI e.V.

www.zvei.org