Two in three German industrial companies report supply bottlenecks: ifo Institute

BERLIN, Aug. 2 (Xinhua) -- Germany's industry was increasingly worried about supply bottlenecks of materials such as chips and semiconductors, as almost two in three companies reported production impeded by shortages, the ifo Institute announced on Monday.

From April to July, the share of German industrial companies worried about the shortages grew from 45.0 to 63.8 percent, according to the quarterly ifo survey among 2,700 companies.

The previous quarter had already seen a record figure, which now was "significantly exceeded once again," said Klaus Wohlrabe, head of surveys at the ifo Institute. "This trend could threaten the economy's recovery."

The shortage of semiconductors and chips had a "particularly strong impact" on electrical equipment manufacturers as well as carmakers and their suppliers, at 84.4 percent and 83.4 percent, respectively, according to the ifo Institute.

"Purchase prices, some of which have risen sharply, are another problem," Wohlrabe added. "Currently, manufacturers are still meeting demand from their stocks of finished goods, but they are telling us that these are now also becoming noticeably depleted."

Latest figures by Destatis, the Federal Statistical Office of Germany, show that producer prices for industrial products in July increased by 8.5 percent month-on-month. It was the highest year-on-year increase since January 1982 when prices skyrocketed during the second oil crisis.