German electrical and electronic industry: the results of February and the business climate


Zvei has published its Business Cycle Report on German electrical and electronic industry. In February of this year new orders have slightly failed their pre-year level. Altogether they decreased by 0.4%. While domestic bookings sank by 5.2% (year-on-year), foreign orders picked up by 3.9%. Euro zone customers booked 7.8% less than a year earlier. In contrast, clients from third countries ordered full 11.9% more. Accumulated from January through February 2015 new orders were more or less unchanged compared to their 2014 level. Nothing to speak of, they were 0.2% down. Again, a decrease in domestic bookings (by minus 6.3%) and an increase in foreign bookings (by plus 5.3%) have faced each other. New orders from the euro area declined by 1.9% (yoy), whereas new orders from non-euro zone countries rose strongly by 10%.

zvei orders

Production grows only slightly in February
Real production – adjusted for price – of the German E&E industry’s firms has expanded only very slightly in February 2015. All in all it grew by 0.3% (year over year). During the entire period from January through February of this year the sector’s output has failed its 2014 level by 0.4%. (Note that the January figure has been revised downwards markedly from previously plus 0.6% to minus 1.2%.) The sector’s firms’ production plans have – on balance – been raised markedly in March of this year. 30% of the companies plan to increase their output in the next three months to come. 66% intend to maintain their current production level, only 4% want to curb it.

zvei production

Turnover: foreign businesses ensure sales growth in February
With €13.8 billion sales of the German E&E industry’s companies have exceeded their pre-year level by 3.6% in February of this year. Domestic turnover sagged by 2.2% to €6.5 billion, but foreign turnover grew by 8.9% to €7.3 billion. Sales to euro area and to non-euro area customers increased by 12.1% to €2.8 billion and 6.9% to €4.5 billion, respectively. In the full period from January through February 2015 the sector’s turnover came to €26.8 billion and, therewith, was 2.4% up on its pre-year level. Domestic sales fell by 3.2% to €12.8 billion. Against it, foreign sales rose by 7.6% to €14 billion. Here turnover with euro zone clients soared by 10% to €5.3 billion, and sales to third countries went up by 6.% from a year earlier onto €8.7 billion.

zvei turnover

Business climate declines slightly in March
After four successive ascents before the business climate in the German E&E industry has declined somewhat in March of this year. While the companies’ assessment of their current economic situation has turned out to be less favorable than in February, their overall expectations for the next six months to come increased slightly. 31% of the sector’s firms now evaluate their present situation as good, 60% as stable and only 9% as bad. Regarding expectations, 30% of the companies reckon that their activities will liven up in the coming six months. 63% and 7% are awaiting unchanged and decreasing affairs, respectively. However, export expectations for the next three months to come have gone up in March. They rose for the fifth time in a row.

zvei business climate