Business
Supply delays threaten German manufacturing prospects: PMI
Published by linker 5
Posted on February 1, 2021
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by linker 5
Posted on February 1, 2021
BERLIN (Reuters) – Increasing supply delays threaten to slow Germany’s manufacturing sector, which remained in growth territory in January despite a hard lockdown to quell a second wave of the coronavirus, a survey showed on Monday.
IHS Markit’s Final Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about a fifth of the economy, fell to 57.1, higher than a flash reading of 57.0 but lower than December’s 58.3 mark.
Factories in Europe’s biggest economy have been humming along during the pandemic on higher demand from abroad, giving the economy much needed impetus as the services sector stalls.
Phil Smith, principle economist at IHS Markit, said the immediate impact of supply bottlenecks were rising costs.
“The survey gives some cause for concern regarding the growing incidence of supply delays,” said Smith. “Increasing demand for inputs from manufacturers, combined with shortages of materials and shipping containers has created a perfect storm for supply chains, with January’s survey indicating a record increase in lead times.”
He added: “Whilst any impact on actual production levels seems to have been only limited so far, with output keeping pace with new orders, we are seeing declining levels of inventories at manufacturers, and therefore a growing risk of disruption.”
(Reporting by Joseph Nasr; Editing by Toby Chopra)