(Bloomberg) -- German industrial companies expect the supply-chain issues that have disrupted production in Europe’s biggest economy to hamper output for at least ten more months.
The issues are especially dire in carmaking, electrical manufacturing and mechanical engineering, where some 90% of companies say they can’t get all the materials needed to run their factories, the Munich-based Ifo Institute said Wednesday, citing its survey of manufacturers.
“The long-awaited relaxation in the supply chains is being pushed further and further back,” said Klaus Wohlrabe, who heads the group’s survey activities. “For many companies, supply bottlenecks are unfortunately part of everyday life now.”
The materials shortages, weakening demand due to inflation and the threat of energy-supply halts are clouding forecasts of many manufacturers. Germany’s economy could contract by 12.7% in the remainder of this year should Russia fully turn off natural gas supplies, according to a report by the Bavarian Industry Association, whose members include BMW AG and Deutsche Telekom AG.
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