FILE PHOTO: A worker at the Volkswagen assembly line in Wolfsburg, Germany, April 27, 2020. Swen Pfoertner/Pool via REUTERS/File Photo
December 14, 2021
BERLIN (Reuters) – German engineering association VDMA on Tuesday cut its 2021 production forecast as supply chain bottlenecks weighed on output in Europe’s biggest economy.
VDMA revised down its production growth forecast for the year to 7% from its September estimate of 10%.
Engineering orders rose by 34% in real terms in the first ten months of 2021, but production rose by only 7.2% in the same period, VDMA added.
“We could have produced more had the various supply bottlenecks not been so persistent,” VDMA President Karl Haeusgen said in a statement.
The association, which raised its production forecast for 2022, said it expects the bottlenecks to persist at least until the second quarter of next year.
(Reporting by Riham Alkousaa, Editing by Miranda Murray)
Source: One America News Network
