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German industry ‘not out of the woods’ despite increased output

FILE PHOTO: VW restarts Europe's largest car factory after coronavirus shutdown
FILE PHOTO: A worker wears a protective mask at the Volkswagen assembly line after VW restarted Europe’s largest car factory following the coronavirus shutdown in Wolfsburg, Germany, April 27, 2020. as the spread of coronavirus disease (COVID-19) continues. Swen Pfoertner / Pool via REUTERS / File Photo

December 7, 2021

BERLIN (Reuters) – German industrial output rose more than expected in October in a rare sign of manufacturing strength, but analysts warn that supply bottlenecks for raw materials Crude and intermediate goods will continue to hamper production in Europe’s largest economy.

The Federal Statistics Office said industrial output rose 2.8% in the month after a 0.5% decline in September. A Reuters poll pointed to a 0.8 percent gain in October.

But total production is still 6.5% lower than in February 2020, the month before the pandemic-restrictive measures took effect.

“Despite good manufacturing data for October, German industry is not yet out of danger of failure,” said Commerzbank chief economist Joerg Kraemer.

Adding to the growth outlook for manufacturers, German industrial orders also recorded a much larger-than-expected decline https://www.reuters.com/business/weaker-foreign -demand-sinks-german-industrial-orders-october-2021-12-06 in October, data showed on Monday.

Kraemer pointed out that nearly three-quarters of companies are still complaining about material shortages hindering production, adding that the closure of new factories and ports in China due to coronavirus infections could mean the problem will continue.

The car industry increased output by 12.6% in October, according to Kraemer, which helped boost overall output, according to the statistics office.

The car industry is sitting on a bloated order book and is unable to process orders due to severe bottlenecks.

LBBW’s Jens-Oliver Niklasch said: “Despite yesterday’s drop in new orders, orders are certainly still there to expand production aggressively over a longer period of time. .

(Reporting by Michael Nienaber and Miranda Murray Editing by Paul Carrel and Catherine Evans)

https://www.oann.com/german-october-industry-output-rises-beyond-expectations/?utm_source=rss&utm_medium=rss&utm_campaign=german-october-industry-output-rises-beyond-expectations German industry ‘not out of the woods’ despite increased output

Bobby Allyn

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