FRANKFURT, GERMANY — After seeing declines in three straight quarters, incoming orders in Germany's printed circuit board industry increased by 5.7% in the second quarter, according to ZVEI. Sales also saw an increase for the sixth quarter in a row.

Despite the positive numbers, industry expectations remain cloudy, which can be attributed to the current economic and political situation.

At the end of the second quarter, business expectations were pessimistic: 29% of companies expect their own economic development to deteriorate, down from the previous quarter's 25%, and the number of economic optimists halved from 8% to just 4%. Sixty-seven percent of companies believe that the economic situation will remain the same. The causes of the negative expectations are Russia's war of aggression in Ukraine, the ongoing effects of the coronavirus pandemic, the sluggish availability of materials in many areas, rising costs for energy, materials and supplies coupled with rising inflation, as well as consumers' reluctance to buy and companies' investment provisions.

The order backlog increased for the eighth consecutive quarter with a book-to-bill ratio of 1.11 – a new record value.