Supply bottlenecks continue to hit German manufacturers

By Gokhan Ergocun

ISTANBUL (AA) - October figures showed that German manufacturers are still being plagued by global supply problems, data provided by London-based IHS Markit said on Tuesday.

The country's purchasing managers index (PMI) fell from 58.4 to 57.8 in October month-on-month, said a report by the data provider, adding:

"Material shortages were a restraining factor for both output and new orders, while at the same time they underpinned a record increase in factory gate charges as firms looked to pass on sharply rising costs to customers."

The report stressed that trends in employment and expectations for the month were also negative.

"The rate of job creation slowed for a third straight month, while business optimism slipped to the lowest since August 2020."

Phil Smith, associate economics director at IHS Markit, said producers have lost their confidence that those problems will be resolved in the short term.