The Shortage of Materials Needed for German Industry has Worsened Amid the Pandemic
OREANDA-NEWS. The shortage of materials necessary for the production of products in the industrial sector of Germany has further worsened against the background of the pandemic. This is evidenced by data released by the Munich Institute for Economic Research ifo on Monday, November 29.
According to the report, 74.4% of the companies surveyed in November complained about the shortage of intermediate products and raw materials, as well as problems with their purchase. This is four percentage points more than in October.
«Hopes for relief of the situation have not been fulfilled», said ifo expert Klaus Wohlrabe. «The end of the recession associated with semi-finished products in the industry is not expected», he added.
According to the research institute, the number of companies having problems with the procurement of raw materials, components and materials has increased in almost all industries. The only exception, according to ipo experts, was the production of electrical equipment. In this area, the proportion of firms complaining about a shortage of materials has decreased from 90 to 85 percent. At the same time, this sector still «continues to be one of the most affected», the ifo said.
About 86% of companies complained about the shortage in the machine-building sector, 88% in the automotive industry. The tense situation in the field of procurement of materials and components against the background of high demand leads to an increase in prices for final products.