Germany: production of electrical and electronic products grew by 7.8%

Image by Johannes from Pixabay

According to ZVEI, Association that represents the German electro and digital industry, the production (adjusted for price) of electrical and electronic products grew by 7.8% (year on year) in September. With it, from January through September the sector’s real output surpassed its respective 2021 level by 3.5%. While the capacity utilization within the sector came to 88.2% at the beginning of the fourth quarter of 2022 and, therewith, more or less stayed the same as three months earlier (88.3%), the reach of unfilled orders decreased from 5.6 to – still far above average – 5.2 (production) months. Supply constraints (i.e., material shortages, logistical problems etc.) remain by far the biggest production obstacle. At least, the share of affected companies fell from 89% to 78% most recently. Half (51%) of all firms complain about a shortage of skilled workers. 15% of the companies meanwhile report about a lack of demand. Three months ago that was true for merely 10% of the sector’s firms.