Bottlenecks in the delivery of raw materials dampened industrial production and in turn prevented Germany’s stronger economic growth, Bundesbank said in its monthly report, released Monday.
The central bank said the largest euro area economy continued to recover in the summer, with activity rising even more than in the spring. The bank noted that the easing of coronavirus related restriction helped the service sector to expand strongly.
However, supply bottlenecks dampened industrial production. That prevented an even stronger increase in the gross domestic product, said Bundesbank.
The automotive industry is particularly badly affected, and is suffering above all from the lack of semiconductors, the bank observed.
In the current quarter, macroeconomic activity is expected to grow significantly weaker as the strong momentum in the service sector is likely to subside considerably, the bank said.