The UK’s interconnect technology sector saw sales fall 13% year-on-year in the first half of 2026, but a sharp recovery in order intake is fuelling optimism for the second half, according to the latest half-year report from the Interconnect Technology Suppliers Association (ITSA).
Members reported a book-to-bill ratio of 1.30 to 1.0, with overall orders up 8% compared with the same period last year. The picture improved significantly through Q2, with some members reporting order growth of up to 50% and a 27% increase in orders quarter-on-quarter against Q1. Revenues, meanwhile, were down just 3% on Q1, suggesting the rate of decline is slowing.
Performance varied sharply across end markets. Consumer electronics led the way with sales up 50%, followed by broadcast (up 45%), utilities (up 44%) and mass transport (up 28%). Test & measurement grew a more modest 11%, while mil/aero was almost flat, up just 1% – a slowdown compared with the previous period. Medical demand held steady.
The clearest cause for concern was distribution, where revenues fell 28%, marking the sector’s steepest decline in more than three years and its lowest levels since 2021 across two consecutive quarters. With distribution accounting for 42% of members’ total revenue, the drop is significant, though ITSA said it remains unclear whether destocking, inventory realignment, or supply chain adjustments are behind the fall.
Despite the mixed results, ITSA struck a cautiously positive tone on the outlook. “Overall, the interconnect market remains resilient against all of the challenges from home and abroad,” the association said in its report, adding that the strength of order intake in Q2 “should mean improvements in Q3/4.”
The full ITSA Q2 2026 members’ report is available on the ITSA website.
