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Bottlenecks tighten further across German industry - Ifo

Published 11/29/2021, 02:00 AM
Updated 11/29/2021, 02:05 AM
© Reuters. FILE PHOTO: A robot engineered by Kuka adjusts a windscreen in a fully automated process on a model of the A-class production line of German car manufacturer Mercedes Benz at the Daimler factory in Rastatt, Germany, February 4, 2019. REUTERS/Kai Pfaffenba

BERLIN (Reuters) - Supply constraints afflicting German industry grew more severe in November, with 74.4% of firms complaining of problems procuring inputs and raw materials, a 4 percentage point increase over October, the Ifo institute said.

"There is no sign of the hoped-for relief," said Klaus Wohlrabe, director of the Munich-based institute, warning that the constraints would feed through into prices.

"Never have so many companies said they plan to raise prices," Wohlrabe added.

© Reuters. FILE PHOTO: A robot engineered by Kuka adjusts a windscreen in a fully automated process on a model of the A-class production line of German car manufacturer Mercedes Benz at the Daimler factory in Rastatt, Germany, February 4, 2019. REUTERS/Kai Pfaffenbach/File Photo

The Munich-based institute said its survey of German companies had found sharper supply constraints in all sectors except the electrical equipment sector, where the share of firms reporting problems slipped from 90% to 85%.

It remained one of the most severely affected sectors, along with the machine building sector, where 86% reported problems, and the auto sector, where 88% had problems. The sector least affected was drinks manufacturing, where only 40% reported bottlenecks.

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