Production Expectations in German Manufacturing Improved
German manufacturers’ production expectations rose in September, according to surveys by the ifo Institute. The indicator stood at 29 points in September, up from 27 points in August. “One reason the production outlook continues to be good is the catch-up effects resulting from the coronavirus pandemic,” says Klaus Wohlrabe, Head of Surveys at ifo. “Order books are still full. The only problems at the moment are due to material shortages, which are putting a bit of a damper on production plans.”
The production outlook in key industries such as electrical and electronics, machinery and equipment manufacturing, the automotive industry, and the chemical industry remains excellent. In the clothing industry, expectations rose to 41 points – the highest level ever recorded. Significantly more companies in the food and wood industries also want to expand their production.
Manufacturers of leather, leather products, and footwear, meanwhile, are planning to reduce production. Their indicator fell sharply to minus 14 points, down from minus 1 point in August.
