Business cycle – collapse of industrial production – economy

HomeEconomyEconomy7. October 2021, 6:58 p.m.

Economy: industrial production collapses

Delivery bottlenecks are slowing German industry and, economists say, increasingly affecting economic recovery in Europe’s largest economy. In August, industrial production fell 4.0% from the previous month, according to the Federal Statistical Office in Wiesbaden. This is the sharpest drop since the crisis of the first Corona wave in spring 2020. It has also been more severe than analysts expected. “The bottlenecks in the delivery of raw materials and preliminary products have turned out to be more serious than previously thought,” commented the Federal Ministry of the Economy. According to an Ifo survey, companies are hoping for an increase in production. Economists, however, expect industry to slow down the German economy as a first step. One of the reasons for the bottlenecks is the day after the Corona crisis. In the context of the global economic recovery, demand for semiconductors, for example, has increased sharply. Industrial companies are sitting on well-filled order books, but sometimes cannot process them for lack of material. This affects, among other things, mechanical engineering and automotive production. In the case of automakers, production lines stand still.

© SZ of October 8, 2021 / dpa

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