Almost every third German industrial company still complains about material shortages. In June, 31.9 percent reported bottlenecks in preliminary products and raw materials, after 35.3 percent in May, as the Munich Ifo Institute announced on Thursday in its current company survey.
Although this is the lowest level in more than two years, it is more than double the long-term average of 15.2 percent. “Unfortunately, the relaxation can hardly do anything to counteract the downturn in industry,” said Klaus Wohlrabe, head of the Ifo surveys. “Orders can be processed faster, but too few new ones are coming in at the moment.”
According to the Ifo Institute, the bottlenecks in the industry remain divided. In the electrical industry, mechanical engineering and automotive construction, more than every second company continues to report problems. “However, the shortage was also declining here,” it said. In most sectors, however, the proportion of companies with problems with pre-products is now back below the 20 percent mark. These include the chemical industry (12.6 percent), manufacturers of metal products (15.8) and furniture manufacturers (8.5).
The companies from the paper industry, the printers and the manufacturers of wood products (excluding furniture) are almost worry-free, where the figure is less than five percent. Economists predict difficult months for the export-dependent German industry. “In the near future, the ongoing weakening of export orders, the expected slowdown in the US economy, high inflation and the great uncertainty will leave their mark on German exports,” said ING chief economist Carsten Brzeski. The current development in foreign trade confirms “that sluggish exports are no longer the exception, but the new normal”.