European Electronics Manufacturing Sees Modest Growth in January 2025
Brussels, Tuesday, 4 February 2025.
The manufacturing PMI for January 2025 is 50.9, revealing modest growth in Europe’s electronics industry amidst fluctuating conditions, signaling potential expansion over the coming year.
Breaking the Contraction Cycle
After 26 consecutive months of contraction, the manufacturing sector has finally returned to expansion territory [1]. The January 2025 PMI reading of 50.9% represents a 1.7 percentage point increase from December’s figure of 49.2% [1][3]. This positive shift is particularly significant for the electronics sector, where new orders have shown robust growth with the New Orders Index reaching 55.1% [1].
Supply Chain Dynamics
The electronics industry continues to face specific challenges, with both electrical and electronic components remaining among the commodities in short supply [1]. However, the Supplier Deliveries Index indicates improving conditions, with manufacturers reporting that supplier performance is increasingly meeting customer expectations [1]. The global context shows varying regional performance, with developed markets, particularly the US, leading the growth momentum [2].
Employment and Production Trends
The sector’s recovery is further evidenced by improving employment figures, with the Employment Index rising to 50.3%, marking a significant 4.9 percentage point increase from December [1]. Production has also returned to expansion territory, with the Production Index reaching 52.5%, up from December’s 49.9% [1]. This growth pattern suggests a gradual but steady recovery in manufacturing capacity utilization.
Future Outlook and Economic Implications
Looking ahead, the manufacturing sector’s return to growth has broader economic implications. The global economic landscape shows signs of continued expansion, with the latest data indicating annualized growth potential [2]. However, challenges remain, particularly regarding raw material prices, with the Prices Index at 54.9% indicating continued inflationary pressures [1][5]. The European market is showing particular resilience, with modest growth in manufacturing PMI as of January 30, 2025 [5], suggesting a potentially sustainable recovery path for the electronics sector.