Germany: supply problems slow industrial production
The semiconductor shortage is affecting the automotive sector.
Here at a Volkswagen factory in Zwickau, Germany.
© AP - Jens Meyer
Text by: RFI Follow
2 min
The economic consequences of the pandemic, with the supply difficulties it generates, continue to be felt.
This is particularly true for Germany, whose highly exporting industry plays a central role in the economy.
The latest figures for industrial production are on the decline as expected to rebound.
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From our correspondent in Berlin
,
Pascal Thibaut
German industry looks like a large displacement engine whose engine roars but the handbrake is not released.
The order books are well filled but the stewardship does not follow.
Industrial production fell for the third straight month in June - minus 1.3% - as experts expected a rebound.
Problems in the supply of materials and components prevent German industry from being as efficient as it could be.
This is particularly true for semiconductors which are lacking in automobile manufacturers.
The building is hampered by the shortage of wood.
Two thirds of industrial companies are affected by these supply problems according to a survey by the IFO institute.
►Also read: A giant semiconductor shortage weakens the automotive industry
Analysts are hoping that the situation will normalize in the fourth quarter and that production can run at full speed while orders are there.
It is above all consumption that currently supports the German economy.
Unlike industry, services hit by restrictions during the pandemic are doing well.
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