German industry continues to suffer under supply chain frictions – ING

Analysts at ING offer their afterthoughts on the German Industrial Production numbers, which came in way below market expectations.

Key quotes

“German industry is facing a challenging and complex environment. When lockdown restrictions were lifted around the world, supply chain frictions overshadowed any rebound effect and sent industrial production into negative territory.”

“Instead of the hoped-for rebound, disappointing industrial production in August suggests that the traditional growth engine of the German economy will again be a drag on growth in the third quarter.”