The range of orders is particularly large in the automotive industry.
(Photo: dpa)
Munich German industry is struggling with replenishment problems – which has long been reflected in the order books. The companies could continue to produce for four and a half months without a single new order, according to the analysis of the April Ifo company survey published on Monday.
“The backlog of orders reflects not only the high demand for German industrial goods in recent months, but also the difficulties companies are having in processing existing orders promptly due to the lack of important preliminary products and raw materials,” said Timo Wollmershäuser, head of Ifo economic forecasts .
The range of orders is particularly large in the automotive industry including suppliers at 7.4 months and in mechanical engineering at 6.5 months.
If the delivery bottlenecks resolve in the coming months, the Ifo Institute believes that production could take off. “That would then give a strong boost to economic output,” said Wollmershäuser. However, the economist expects the supply bottlenecks to worsen, primarily as a result of the corona lockdowns in China.
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In the previous survey in January, it was 4.4 months. For comparison: the long-term average order reach is 2.9 months. The increase in range is now only small, according to Wollmershäuser. “This indicates that the flow of new orders is gradually weakening.”
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