Production Expectations in German Industry Improved
German manufacturers’ production expectations improved in August, according to surveys by the ifo Institute. The indicator rose to 27 points in August, after measuring 23 (seasonally adjusted) in July. This is very high compared to the long-term average. “Apparently, companies are hoping that supply bottlenecks for intermediate products will slowly ease over the coming months,” says Klaus Wohlrabe, Head of Surveys at ifo.
Expectations in the automotive sector, for example, rose sharply from 24 to 35 points, in the chemicals sector from 23 to 34 points, and among manufacturers of machinery and equipment from 35 to 42 points. In contrast, the indicator fell from 23 to 21 points in metal production and processing, from 21 to 18 points in metal products manufacturing, and from 25 to 7 points in furniture manufacturing.
