ifo Production Expectations up Only Slightly
Production expectations in German manufacturing remained at a high level in June, as their indicator rose to 27 points from 26 points in May. This is a finding from the most recent ifo Business Survey. “Supply bottlenecks for key intermediate products are currently standing in the way of a stronger increase in industrial production,” explains Timo Wollmershäuser, Head of Forecasts at ifo. “However, developments in different industries are very varied,” he adds. “We saw the strongest improvement in the production prospects for manufacturers of leather, leather products, and footwear. The heaviest decline was in the pharmaceutical industry.”
Expectations in the food industry also improved markedly. In the clothing, automotive, and rubber and plastic goods manufacturing sectors, expectations are slightly better than in the previous month. Production prospects for manufacturers of machinery and equipment remain virtually unchanged at a high level. The electrical and electronics industry, the chemical industry, and manufacturers of basic metals also continue to have optimistic expectations.
Meanwhile, beverage producers and computer manufacturers have dimmed their expectations slightly, but their production outlook remains at a high level. Textile manufacturers are significantly lowering their expectations and anticipate a slight expansion in their production.
The German Federal Statistical Office will publish its May figures for industrial production today, Wednesday.
