German electric and digital industries experience a substantial drop in orders

Decline in Orders Observed in German Electrical and Digital Sector

The German electrical and digital industry faced a mixed picture during the first seven months of 2025, as indicated by recent data.

According to the industry association ZVEI, the industry recorded an increase in orders of 3.6% for the mentioned period compared to the previous year. However, this overall positive trend was tempered by a significant decline in domestic orders.

The decline in domestic orders, a reversal of the previous trend, saw a sharp drop of 28.9%. This drop followed four months of growth in orders. The cause for this decline was not specified in the reports.

Despite the setback in domestic orders, the industry was able to boost its turnover. The German electrical and digital industry was able to increase its turnover by 6.9% year-on-year to 18.8 billion euros in July 2025.

Meanwhile, foreign orders presented a positive trend for the industry's international business. There was an increase of 12.2% in foreign orders, a trend that continued for the first seven months of 2025. This surge in foreign orders helped offset the decline in domestic orders, resulting in a 3.6% increase in orders for the first seven months of 2025 compared to the previous year.

However, the price-adjusted production of electrical and electronic goods in Germany also saw a decrease of 5.3% during the same period. This decrease was not sustained for the entire seven months, as a decrease was observed only for the initial months.

The ZVEI chief economist, Andreas Gontermann, was not quoted in this specific article regarding the developments for the first seven months of 2025.

The overall trend for the first seven months of 2025 suggests a mixed picture for the German electrical and digital industry, with both positive and negative developments.

It is worth noting that within the German electronics and digital industry in July 2025, no specific companies or sectors are explicitly identified as particularly affected by an order decline in the search results. However, overall consumer uncertainty due to geopolitical tensions and inflation fears led to cautious spending, especially on larger purchases, which likely impacted demand broadly.

As we move into the second half of 2025, the industry experienced a decline of 8.9% in orders at the start of this period compared to the previous year. The industry will be closely monitoring these trends to gauge the future developments of the German electrical and digital industry.