Supply bottlenecks cast shadow over German industry – Ifo

FILE PHOTO: The spread of the coronavirus disease (COVID-19) in Berlin
FILE PHOTO: The Berlin skyline is seen, during the spread of coronavirus disease (COVID-19) in Berlin, Germany, April 1, 2020. REUTERS/Michele Tantussi

August 25, 2021

BERLIN (Reuters) – Activity in Germany’s industrial sector remains at a high level but manufacturers are worried about disruption caused by shortages of semi-conductors, plastics and metals, Klaus Wohlrabe of the Ifo economic institute said on Wednesday.

“70% of manufacturers complain about bottlenecks, up from 64% in July,” he said. “Export expectations have fallen but remain at a good level.”

He said half of companies in both manufacturing and retail wanted to increase prices to make up for higher costs and that rising coronavirus infections have resulted in a sharp fall in expectations in hospitality and tourism.

(Reporting by Rene Wagner; Writing by Joseph Nasr; Editing by Madeline Chambers)