The shortage of materials in German manufacturing has become even more severe. In September, 77.4 percent of industrial companies in Germany reported bottlenecks and problems with intermediate products and raw materials. This makes September the second consecutive month to surpass a record set the previous month; in August, the figure stood at 69.2 percent.

This is the finding of an ifo Institute survey. “The bottleneck in procurement is getting tighter and tighter,” says Klaus Wohlrabe, Head of Surveys at ifo. Price increases remain on companies’ agendas.

“There are plenty of orders, but companies are currently unable to manufacture the goods to fill them,” he adds. The situation is particularly serious in the automotive industry, with nearly all companies (97 percent) reporting problems. The proportion also remains very high in other key industries: in electrical equipment (93 percent), the chemical industry (67 percent), and the manufacture of machinery and equipment (89 percent). In the paper industry, too, significantly more companies reported shortages in procurement (79 percent, up from 61 percent). There was no easing of the situation in any sector.

As a result, more and more companies are looking to raise prices. Recently, there had been little room for maneuver in the automotive industry when it came to price increases. This has now changed.

Source: ifo Institute