Germany’s leading industrial groups have lowered their forecasts this year one after another. The background is that supply constraints have worsened due to China’s lockdown and the invasion of Ukraine.
On the 30th, the German Machinery and Equipment Industry Federation (VDMA) revised its production outlook for German-made industrial machinery downward by 1%. Two months ago, it had been revised downward from a 7% increase to a 4% increase. Last year it was up 6.4%.
The German Industrial Federation (BDI) has also revised its export outlook this year down to 2.5%. The forecast for January was up 4%.
According to a survey by the IFO Institute of Economic Research, 77.2% of companies point out problems with clogging of the supply network and procurement of intermediate goods and raw materials. Half of the companies facing raw material shortages said the situation was exacerbated by the lockdown in China.
According to VDMA, before Russia’s invasion of Ukraine, 80% of companies said that the outlook for Russian business was good, but now 75% of companies say that Russian business will deteriorate in the next 6 months, or from Russian business. They answered that they would like to withdraw.
Cheyenne Cox is a news report covering multiple Market and economy News. She is creative and highly professional writer. Cheyenne holds a degree in communication and journalism and has also a Diploma in digital marketing. She belongs to south Africa who has also lived in Europe and is currently based in the US.