BERLIN, July 9 (Xinhua) -- Orders in the German electrical and digital sector recorded a year-on-year decline of 11.5 percent in May, showing no recovery, an industry association said on Tuesday.
According to the German Electrical and Digital Industry Association (ZVEI), domestic orders fell by 14.9 percent, while orders from international customers decreased by 8.7 percent year-on-year in May.
A ZVEI spokesperson told Xinhua that demand is still weak, and its recovery is taking longer. Despite an expected gradual recovery over the rest of the year, the association anticipates production in the electrical and digital sector to decline by 2 percent in 2024.
Many companies in Germany's second-largest industry sector, including chipmaker Infineon and technology giants Siemens and Bosch, are either reducing their workforce or have announced plans to cut jobs.
The situation is similarly bleak across the entire manufacturing sector of Europe's largest economy. In May, total orders were down 8.6 percent year-on-year, according to preliminary figures from the Federal Statistical Office (Destatis).
Germany is becoming increasingly unattractive to investors due to competitive disadvantages caused by high energy and labor costs. In recent years, the country has seen significant investment outflows, leading the German Economic Institute (IW) to warn of the onset of deindustrialization. ■