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German engineering production grows less than expected in 2021 on supply woes

Published 12/14/2021, 04:28 AM
Updated 12/14/2021, 04:31 AM
© Reuters. FILE PHOTO: A worker at the Volkswagen assembly line in Wolfsburg, Germany, April 27, 2020. Swen Pfoertner/Pool via REUTERS/File Photo

BERLIN (Reuters) - German engineering association VDMA on Tuesday cut its 2021 production forecast as supply chain bottlenecks weighed on output in Europe's biggest economy.

VDMA revised down its production growth forecast for the year to 7% from its September estimate of 10%.

Engineering orders rose by 34% in real terms in the first ten months of 2021, but production rose by only 7.2% in the same period, VDMA added.

© Reuters. FILE PHOTO: A worker at the Volkswagen assembly line in Wolfsburg, Germany, April 27, 2020. Swen Pfoertner/Pool via REUTERS/File Photo

"We could have produced more had the various supply bottlenecks not been so persistent," VDMA President Karl Haeusgen said in a statement.

The association, which raised its production forecast for 2022, said it expects the bottlenecks to persist at least until the second quarter of next year.

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