German Manufacturers Want to Increase Production
German manufacturers’ production expectations have improved considerably. After measuring 21.5 points in February, the indicator rose to 30.4 points in March – its highest level since 1991. This is a finding from the most recent ifo Business Survey. “Order books are filling up, and there is still some catching up to do in the wake of the crisis last year,” says ifo expert Klaus Wohlrabe. Almost all sectors have announced plans to increase production. “The automotive and electrical industries in particular are looking to greatly expand their production,” Wohlrabe adds.
For the automotive industry and its suppliers, the indicator rose to 46 points from 36 points in February. In the electrical industry, it jumped to 44, up from 32 in February. Among machinery and equipment manufacturers as well as beverage producers, the survey score increased to 38 points. In metal production and processing, it climbed to 36 points from 20 in February.
Expectations in the chemical industry held more or less steady at 19 points, after 21 in February. Manufacturers of leather and related products are finally ready to ramp up production again: their survey score reached plus 21 points after measuring minus 34 in February – a dramatic turnaround. Furniture manufacturers (minus 2 points) are planning to keep their production levels as is. Only the clothing industry (minus 41 points) intends to scale back production.
The German Federal Statistical Office will announce its February figures for industrial production on Friday.
