ifo Business Survey of the Manufacturing Sector: Strong Economy Leads to Bottlenecks

At the beginning of 2018, manufacturing companies participating in the ifo Business Survey rated their business performance as better than ever since reunification. Although the situation has cooled slightly since then, it still remains very good. At the same time, the number of firms complaining of negative influences on their production activity increased significantly over the course of the year. More specifically, shortages of skilled workers, materials and raw materials have become increasingly apparent. This article features the quarterly survey question on production constraints in manufacturing in greater detail; and highlights current developments and their background in greater detail.