German Zhicu: The inflation rate or acceleration increase in the industrial sector

#accelerate  #industrial  #decline#lack 

 On July 30, the German Zhicu Ive Economic Research Institute pointed out that the German economy recovered slowly in the second quarter, mainly because of the influence of economic output atrophy due to industrial sector.

The Institute's senior economist Timo Wailmer Herze analyzed that although the relevant enterprises' orders are in a saturated state, the delivery of important primary products encounters bottlenecks, hindering the expansion of production scale. In contrast, trade and service areas benefit from the decline in infection cases, the rapid development of vaccination work and the release of various restrictions on the early summer, and sales have increased strong growth with the beginning of this year.

Iversi Economic Research expects German economic recovery in the third quarter, may continue to maintain weak state. Especially in the manufacturing industry, the problem of delivery bottleneck is increasingly serious, production may continue to shrink. The continued decline in business expectations in recent months has shown this - two-thirds of manufacturing companies say that in a survey in July, the lack of intermediate products hindered production. In April, this ratio is only 45%.

In addition, energy prices and normal value-added tax return will result in accelerated rising in Germany in the next few months - or more than 4%. However, the Ivers Economic Institute said that the inflation rate will gradually fall to 2% in early next year. In this regard, Wailmes, in this regard, the European Central Bank has no reason to tighten monetary policy.