January 27, 2023

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Ifo economist says that virus situation, production bottlenecks is subduing German recovery

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Remarks by Ifo economist, Klaus Wohlrabe

  • Industrial sector is booming but has problems with pre-production
  • 45% of industrial companies complain about pre-production problems, bottlenecks
  • Order book situation has improved at least, as well as capacity utilisation

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Nothing here that hasn’t really been foreshadowed by the PMI readings over the past few months really. The supply bottlenecks have also led to higher input costs and in turn, putting upwards pressure on prices in general as well.

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