The bottlenecks at the intermediate property level may stop the economic recovery.
by
Between shortages and inflation, industrial production is asphyxiated. For the second month in a row, it decreased in the euro zone of 0.2% in September compared to the previous month, after a fall of 1.7% in August, according to the data published on Friday, November 12 by Eurostat. Very many bottlenecks limit the smooth functioning of factories: scarcity of microprocessors, lack of containers, swinging ports … The phenomenon, particularly marked in Germany, may seriously curb economic recovery.
The shock is particularly violent in the automotive industry. On November 3, Volvo said that its exports to China had declined by one third and its sales in Europe by 21% because of “a lack of cars available”. For lack of spare parts, including electronic chips, the factories are slowing down.
The November 1, Skoda, a Division of the Volkswagen manufacturer, announced a reduction in its production, always because of this lack of microprocessors. Since June, Mercedes-Benz limits the options available on its new models. Thus, some LED headlights, wireless battery chargers and audio systems are no longer available. The famous Henry Ford adage, launched in 1909, is back: “A customer can have a car of any color, provided it is black.”
Strong inflation
In total, the AlixPartners firm estimates that the lack of chips should reduce from 7.7 million units to international automotive production. “For Germany, where [this sector] accounts for 6% of the gross domestic product, it is the equivalent of [less] of 0.5% of GDP,” Note the Bank of International Regulations (BIS) .
The first country in the euro zone is indeed the most affected by the problem. Industrial production declined in September by 1.1%, and is today 9.5% under its level of the CVIV-19 pandemic, withdrawn Katharina Koenz, Oxford Economics.
France is also affected: industrial production has dropped by 1.3% in September, and is 5.2% below what it was before the health crisis. Here too, transportation equipment records a sensitive fall. Italy, another large industrial country in the euro zone, resists better, with a very slight progression (+ 0.1% in September). Similarly, Spain is relatively little concerned.
You have 46.07% of this article to read. The rest is reserved for subscribers.