The shortage of materials on German construction sites has eased, according to surveys by the ifo Institute. In August, 42.2 percent of companies in building construction said they were suffering from material shortages, down from 48.8 percent in July. The situation in civil engineering also eased somewhat: 31.4 percent of companies reported problems from supply bottlenecks, down from 33.9 percent in the previous month.
The proportion of employees working from home in Germany has fallen slightly. This is according to a monthly ifo Institute survey. It found that in August, the proportion of employees who worked from home at least part of the time fell from 25.5 percent to 23.8 percent. “As the number of vaccinated people increases, more and more employees are returning to the office. However, the drop in people working from home in August is less pronounced than in previous months. This indicates that the proportion is likely to stabilize at a level higher than before the pandemic,” says Oliver Falck, Director of the ifo Center for Industrial Organization and New Technologies.
Recruitment efforts at German businesses are picking up steam again. The ifo Employment Barometer climbed to 103.6 points in August after measuring 102.4 points in July. The upswing in the labor market continues.
Sentiment among German exporters has markedly deteriorated. ifo Export Expectations in manufacturing slumped to 16.6 points in August, down from 23.1 points in July (seasonally adjusted). The German export industry is losing momentum.
The mood in the German economy has clouded over again. In August, the ifo Business Climate Index fell to 99.4 points, after 100.7 in July (seasonally adjusted). This decline was due mainly to significantly less optimism in companies’ expectations. Concerns are growing in the hospitality and tourism sectors in particular. By contrast, companies assessed their current situation as somewhat better than in the previous month. Supply bottlenecks for intermediate products in manufacturing and worries about rising infection numbers are putting a strain on the economy.
Ifo writes: Sentiment among German exporters has worsened somewhat, with the ifo Export Expectations in manufacturing falling to 24.5 points, down from 25.0 points in June. Overall, however, German exports continue to perform very well.
Ifo Institute writes: Sentiment in the German economy has clouded over. The ifo Business Climate Index for Germany fell to 100.8 points in July, down from 101.7 points in June (seasonally adjusted). Companies evaluated their current business situations as somewhat better, but their expectations for the coming months were significantly less optimistic. Supply bottlenecks and concerns over newly rising infection numbers are weighing on the German economy.
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