The German industry is suffering from supply problems such as the shortage of chips for the car industry.
Industrial production in Europe’s largest economy fell 4 percent in August from a month earlier, far more than experts had anticipated. On average, they assumed a 0.5 percent lower production.
The figures from the German statistical office show that the supply problems pose a greater threat to the industry than the corona pandemic, ING said in a reaction to the figures. On an annual basis, the industry grew by “only” 1.7 percent, compared to 6 percent a month earlier.
German industry is on track to end the third quarter of this year with a contraction. It is expected that this will also have a negative effect on the economy as a whole. Also because companies are struggling with increasing staff shortages. The order books of the companies are still well filled.
