According to the ZVEI, the German electrical and digital industry once again recorded an increase in incoming orders in June 2025. Overall, they increased by 10.3% compared to the previous year.
"However, the double-digit growth is mainly due to some large orders from abroad, whereas domestic orders were a fifth down on the previous year," said ZVEI Chief Economist Dr. Andreas Gontermann. Domestic orders fell by 20.6% in June, while foreign orders increased by 39.4%. The increase in orders from third countries (+52.7%) was significantly stronger than those from the single currency area (+12.6%).
The first half of 2025 closed with an overall increase in orders of 5.8%. Domestic orders barely moved, with a marginal decline of 0.1% compared to the same period of the previous year. In contrast, foreign orders increased by 10.7% from January to June. At 13.6%, the growth rate for orders from customers in non-EU countries was more than twice as high as for partners from the eurozone, from whom 5.6% more orders were received.
The first half of 2025 closed with an overall increase in orders of 5.8%
Real production of electrotechnical and electronic goods in Germany, i.e. adjusted for price effects, was 4.6% below the previous year in June 2025. "However, this year's June also had one working day fewer than in 2024, and the Whitsun vacations fell entirely in June in both Bavaria and Baden-Württemberg," says Gontermann. In the first half of the year as a whole, industry output fell short of the previous year's level by 2.3%.
At the start of the third quarter, capacity utilization in the German electrical and digital industry was at 76.3% of normal full capacity. This was one and a half percentage points less than a quarter earlier. The order backlog range remained at 4.2 months of production.
The turnover of domestic electrical and digital companies rose by 1.1% year-on-year to € 19.0 billion in June 2025. While domestic business declined by 4.7% to €8.6 billion, revenue with foreign customers grew by 6.0% to €10.4 billion. Business with countries outside the European single currency (+8.2% to € 6.5 billion) grew more strongly than business with the eurozone (+2.1% to € 3.9 billion).
In the first six months of this year as a whole, aggregated sector turnover amounted to € 108.7 billion, which was almost the same as the previous year (-0.2%). Revenue with domestic customers accounted for € 50.3 billion (-3.2%) and € 58.4 billion with foreign customers (+2.3%). Business with the eurozone (+2.1%) and the rest of the world (+2.4%) developed similarly during this period. The former totaled € 22.9 billion, while the latter closed the first half of the year at € 35.5 billion.
20% of electrical companies have a shortage of skilled workers
According to the ZVEI, electrical companies adjusted their production and employment plans slightly downwards in July. Nevertheless, according to Gontermann, 20% of electrical companies are now complaining of a shortage of skilled workers. A shortage of orders affects 40% and a shortage of materials affects 11%.
The business climate in the German electrical and digital industry also showed a slight upward trend in July 2025. "This was primarily driven by an improved assessment of the current situation. Looking ahead, however, the continued smouldering uncertainties are clouding the picture," said Gontermann. "For example, general business expectations fell compared to the previous month and were only just above the zero line." The more specific export expectations had also fallen: companies expecting more or fewer deliveries abroad in the next three months were only evenly balanced in July.
