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German electrical industry records 5.3 pct less new orders in October

BERLIN
2019-12-09 15:45

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BERLIN, Dec. 9 (Xinhua) -- New orders for Germany's electrical industry fell by 5.3 percent in October year-on-year with revenues decreasing by 4 percent, the German Electrical and Electronic Manufacturers' Association (ZVEI) revealed on Monday.

According to ZVEI, domestic orders even fell by 11.0 percent while foreign orders fell only slightly by 0.7 percent. Orders from the eurozone plunged 9.9 percent, while international orders increased by 4.4 percent.

Because orders had grown at double-digit rates in the previous year, the benchmark was quite high and "the recent decline can certainly be put into perspective", said ZVEI chief economist Andreas Gontermann.

Over the entire period from January to October, orders for Germany's electrical industry were 2.2 percent down compared to last year. German customers had ordered 3.0 percent less while orders from international customers declined 1.7 percent.

In line with the monthly results, orders from the euro zone in the first 10 months of 2019 also decreased stronger by 4.5 percent than international orders which almost remained unchanged, decreasing by 0.1 percent year-on-year.

However, the business climate in the German electrical and electronic industry might have recovered in November. According to ZVEI, 20 percent of companies in the industry rated their current economic situation as good, 57 percent as stable and the other 23 percent as poor.

"While the assessment of the current situation remained roughly at the level of the previous month, general business expectations improved significantly. However, both characteristics and the overall climate are still below the zero line," Gontermann said.
 
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