Breaking News
Black Friday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

German industrial production slumps on supply chain disruption

Economic IndicatorsOct 07, 2021 03:41AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Staff wear protective masks at the Volkswagen assembly line in Wolfsburg, Germany, April 27, 2020. Swen Pfoertner/Pool via REUTERS/File Photo

By Paul Carrel and Rene Wagner

BERLIN (Reuters) -German industrial output suffered its steepest drop in August since April last year, due to supply chain disruptions that are holding back growth in Europe's biggest economy and hitting the auto sector particularly hard, official data showed on Thursday.

The Federal Statistics Office said industrial output fell by 4.0% on the month after an increase of 1.3% in July. A Reuters poll had pointed to a decline in August of 0.4%.

"Manufacturers continue to report production constraints due to supply shortages of intermediate products," the office said in a statement.

Production of cars and car parts fell by 17.5% on the month.

German car companies are struggling to meet a post-pandemic surge in demand since the start of the year, due to a lack of microchips and other intermediate products.

Carmaker BMW said its group deliveries were down 12.2% in the third quarter, hit by the microchip crunch.

On Tuesday, Daimler (OTC:DDAIF) truck boss Martin Daum said he expected the global chip shortage to continue to affect production next year.

"We will definitely deliver less than we could have sold, and that also applies to next year," he said, adding that it was impossible to say how big the shortfalls would be.

"It's a fight for every chip," he added.

Official data released on Wednesday showed German industrial orders fell more than expected in August on weaker demand from abroad following two months of unusually strong gains due to major contracts.

However, the Munich-based Ifo economic institute said separately that its survey of production expectations rose in September.

"Order books are still full, only materials bottlenecks are causing problems at the moment and dampening production plans somewhat," Ifo economist Klaus Wohlrabe said.

Thomas Gitzel, economist at VP Bank, said "if the flow of materials gets going again, the conditions are in place for a strong upturn in industrial activity."

Carsten Brzeski, at ING, said that for now it looked like that upturn would "come rather later than sooner."

Separately, prices for newly built residential buildings rose by 12.6% on the year in August, their biggest rise since November 1970. German consumer prices rose by rose by 4.1% year-on-year last month.

Jens-Oliver Niklasch, economist at LBBW, commented: "Supply shortages, high energy prices and production stoppages: a toxic brew that already smells faintly of stagflation."

German industrial production slumps on supply chain disruption
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Ricardo Diogo
Rcd72 Oct 07, 2021 2:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
wrong analysis! the base motive for slump is because only fed see's that inflation is "transitory" , money printing went directly to speculate not to the real economy..
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email