German engineering firms expect hit from supply chain bottlenecks next year
Reuters
Published Sep 16, 2021 07:13
BERLIN (Reuters) - The majority of German mechanical engineering companies are facing noticeable or serious supply chain problems, a survey by Germany's VDMA engineering industry association showed, with production growth expected to be affected next year.
VDMA said on Thursday 81% of mechanical engineering companies reported impairments in their supply chains, especially electronic components, and two thirds of the companies surveyed suffered from logistics and transport problems.
"That is significantly more than even at the peak of the pandemic in mid-April 2020", VDMA Chief Economist Ralph Wiechers said.
More than half of the companies surveyed expect preliminary production bottlenecks to remain the same and 40% see it increasing, the engineering industry association said, adding that an easing was not expected for at least the next three months.
VDMA kept its production growth outlook for 2021 at 10%, but said output is expected to weaken next year, with a growth forecast of 5%.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.