The procurement of raw materials and primary products will remain a major problem for German industry in the second half of the year. In July, 73.3 percent of the companies surveyed complained about corresponding bottlenecks, as the Ifo Institute announced yesterday, Monday, on the occasion of its monthly survey. In June it was a little more at 74.1 percent.
“In addition to the fundamental shortage of electronic components, problems in global logistics, especially in shipping, continue to contribute to the procurement problems,” said Klaus Wohlrabe, head of the Ifo survey.
In the core sectors of German industry, the situation remains critical: in the electrical industry, mechanical engineering and the automotive industry, around 90 percent of companies continue to report that they are not getting all the materials and preliminary products. According to Wohlrabe, there are no signs of a significant recovery in the procurement of important materials for the next few months. The situation for beverage manufacturers has worsened significantly: 70.5 percent of companies are now affected by material shortages (June: 47.9 percent).
Is a recession looming?
In the clothing industry, on the other hand, the situation is easing a little: 64.1 percent reported bottlenecks here, after 81.7 percent in June.
A lack of materials and preliminary products contributed to the German economy treading water in the second quarter. As reported, the gross domestic product stagnated compared to the previous quarter. Many experts believe a recession is possible in the second half of the year.
Source: Nachrichten
