02 Oct 26
Germany’s electronics business climate rose sharply again in September. In its latest survey release, ifo reported that the index increased to 24.8 points from 16.5 in August, while companies’ assessment of current conditions rose from 15.0 to 29.0 points.
ifo said demand was exceptionally strong, with companies receiving more new orders and again satisfied with their order backlogs. Production plans point to higher output over coming months, while export expectations also improved even as other sectors anticipated weaker foreign business.
The survey also identified a supply constraint: around 40% of companies reported shortages of intermediate goods. More firms plan to raise selling prices, with ifo warning that material availability could become the industry’s bottleneck.
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