FRANKFURT – April orders in the German electronics industry were down 20.8% year-over-year, says ZVEI. Domestic orders fell 18.4%, and foreign orders were down 22.7%.
At 31.1%, the drop in orders from the eurozone was particularly pronounced. Customers from third countries ordered 17.5% less in April than in the previous year.
"The decline was huge, but it was not really surprising, even on this scale, because after all, April was not the only lockdown month in Germany and Europe," said ZVEI chief economist Dr. Andreas Gontermann.
From January to April, orders fell 8.1% year-over-year. Orders from Germany declined 9%, and those from abroad 7.3%. At 12.7%, the decline in orders from the euro area was three times as strong as that from third countries (4.1%).
Real production in the German electronics industry, adjusted for price effects, dropped 17.5% in April compared to 2019. From January to April, industry output was down 6.2% year-over-year.
Even if the business climate in the German electronics industry recovered somewhat in May, it is still well below the zero line and thus in the contractive area, according to ZVEI. The current situation has worsened compared to April, the trade group added. By contrast, general business expectations were able to make up ground. However, both individual indicators remain negative on balance. Finally, the balance of positive and negative export expectations recovered 18 points in May, to -43 points.