Above all, the low availability of many raw materials had a negative impact on both production and orders.
(Photo: dpa)
Berlin German industry is losing further pace on the way to recovery from the corona crisis due to ongoing delivery problems. The purchasing managers index for the key sector fell in October to 57.8 points from 58.4 points in September, as the institute IHS Markit announced on Tuesday.
“The widespread delivery bottlenecks were the biggest problem for German manufacturers at the beginning of the fourth quarter,” explained the researchers. Above all, the low availability of many raw materials had a negative impact on both production and orders. “At the same time, sales prices rose at a record rate, as many companies passed the significantly higher costs on to their customers.”
Despite the decline, the barometer is still well above the growth threshold of 50 points. “According to survey participants, slow manufacturing in the automotive sector is dragging other branches of industry with it,” emphasized Markit economist Phil Smith.
Because companies in this sector are increasingly reducing their orders for components and parts. “Even if the manufacturers of intermediate goods in particular recorded a sustained decline in new orders, overall demand remains robust, especially for capital goods.”
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The purchasing managers’ index for industry for the entire euro zone fell slightly by 0.3 to 58.3 points. Here, too, supply problems caused production stoppages and fewer orders.
The companies looked ahead more skeptically than they had done for a year. Because more and more companies are concerned about the delivery situation and the effects of rising costs and prices, explained Markit chief economist Chris Williamson. “That suggests that companies have some difficult months ahead of them.”
More: The toilet paper effect of delivery bottlenecks – A plea for international trade. A comment.