German industry is struggling with increasing shortages of parts and materials. The leading economic research institute Ifo reports this after a new survey.
This shows that more than three-quarters of the companies complain about supply problems with chips and raw materials.
A month earlier, 69 percent of those surveyed said they were experiencing delivery problems. “Especially on the procurement side, it’s getting tighter,” said Klaus Wohlrabe, Ifo’s head of surveys. The problems particularly affect the country’s auto industry.
Almost all respondents in this sector report problems. The problem is also significant in mechanical engineering and the chemical industry.
The institute recently lowered its growth forecast for this year to 2.5 percent due to supply issues. However, economists in Munich had initially been expected a strong recovery in 2021.