Ifo economist says that there is no let up in supply chain bottlenecks

Remarks by Ifo economist, Klaus Wohlrabe

• Latest fall in Ifo index gives cause for concern
• Supply bottlenecks are putting companies under real pressure
• There is no sign of a let up
• Clear majority of companies are planning price increases
• Expect GDP stagnation in Q4

That is a damning assessment of the economic situation in Germany going into winter and it is one that will make policymakers rather uncomfortable.

The resurgence of COVID-19 cases in the past two months will do little to ease concerns surrounding supply and capacity constraints (in fact, it will just exacerbate them) and that could see the German economy face a troubling next 2-3 months at least.