The recovery in the German distribution market is well under way. It grew 8% to 745m Euro in the second quarter continuing the positive trend of the first quarter according to the latest figures from FBDI, Germany’s component distribution association. Optimism is slightly punctured by bookings weakening to 714m. Euro. The book-to-bill-rate fell to 0.96.
Semiconductors lead the way. Sales of 517m Euro represent 69% of the market, followed by passive components with 106m Euro (14%) and electromechanical components at 77m. Euro (10%). The rest of the market is divided between displays (3%), power supplies (2%) and sensors (1%). As already indicated in the last quarter, the strong growth of orders from beginning of the year has impacted the turnover of semiconductors in the second quarter. This market sector has grown by more than 10% in comparison to the same period in 2013.
FBDi Chairman of the board, Georg Steinberger, says: “The drop in orders indicates that the turn-over will not develop as dynamically during the second half of 2014. Nevertheless we expect that the next quarters will still be positive. In general, our industry remains optimistic about midterm growth prospects.”
FBDi also sees the short- and midterm outlook as positive: the FBDi business climate index * (based on the German school grade system), indicates 2.57 (past quarter), 2.45 for the actual quarter, and 2.24 for the next 12 months. Georg Steinberger: “The figures of last year show the fairly precise climate forecast – the BCI for the coming 12 months was exactly 2.57.”
*The FBDi business climate index includes orders on hand, incoming orders, revenues, and profits and is anonymously compiled on a quarterly basis.


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