Germany: Higher than ever the outstanding balance in manufacturing

The outstanding balance of German manufacturing companies is at an all-time high, according to a survey released today, as businesses struggle to meet high demand due to supply problems.

Even without a new order, production could continue for 4.5 months, Ifo said, citing the results of a survey in which about 2,000 companies took part between April 7-22.

In the previous survey in January, the data spoke for 4.4 months, while the long-term average for the unfulfilled balance of orders was 2.9 months.

“The recent increase in outstanding balance is small, which means that the recruitment of new orders is gradually declining,” the head of forecasting told Ifo, adding that German manufacturing would really “take off” if supply chain problems subsided in the coming months.