German Manufacturers Want to Increase Production
German manufacturers’ production expectations have improved. The corresponding ifo Institute indicator rose from 30.2 points in March to 33.1 points in April – its highest level since 1991. “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. Nearly all industries are announcing production increases. “The electrical and automotive industries in particular are looking to greatly expand their production,” Wohlrabe adds.
Among computer manufacturers, the indicator rose to 48 points in April, after 38 points in March. For the automotive industry and its suppliers, it rose only slightly from 45 to 47 points. In the electrical industry, it remained at 43 points. Among machinery and equipment manufacturers as well as beverage producers, the survey score increased to 41 points and 42 points, respectively. For textile manufacturers, it climbed to 30 points from 16 in March.
Manufacturers of basic metals scaled back their expansive production plans somewhat, with the indicator falling to 28 points from 38 points in March. Manufacturers of rubber and plastic products are also not looking to expand production as much. Here, the indicator fell from 26 points to 19 points in April. The food industry is not planning any major changes; its indicator fell slightly to 9 points. Developments are cautiously positive in the clothing industry: the indicator rose to minus 18 points from minus 40 points in March.
The German Federal Statistical Office will announce its March figures for industrial production today, Friday.
