Production Expectations in German Industry Dip Slightly
German industry has reduced its production expectations somewhat, according to surveys by the ifo Institute. The indicator fell to 22 points in July, down from 27 points in June. However, this figure is still very high compared to the long-term average. “Supply bottlenecks for important intermediate products are now making themselves felt,” says Klaus Wohlrabe, Head of Surveys at ifo.
“The production outlook for the furniture industry, for example, is noticeably weaker.” This value fell to 27 points in July, down from 38 points in June. Beverage producers also slashed their expectations; their indicator fell to 19 points, down from 51 points in June. In the chemical industry and among computer manufacturers, expectations remained at an almost unchanged positive level.
In the automotive industry expectations rose (July: 23 points, up from 16 points) as well as in the clothing industry (July: 33 points, up from 26 points).
The German Federal Statistical Office will publish its May figures for industrial production today, Friday.
