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German Supply Chain Issues Could Add to ECB Woes

GERMAN DATA
MNI (London)
  • Supply chain delays are accelerating again for German retailers, with over 80% seeing some empty shelves as ordered goods are stuck in transit in Covid lockdown-hit Chinese ports, an Ifo report published Wednesday says.
  • The latest report sees 80.1% of respondents seeing a delay in orders, up sharply from April's 67% and only just shy of the December peak at 81.6%. The outcome is in line with the latest MNI Chicago Business Barometer, that also pointed to a resurgence of supply chain issues in the U.S.
  • Two-thirds of retailers said the situation in China in particular had further exacerbated existing supply problems. Shanghai’s COVID lockdown was (mostly) lifted today, although a recent BBG report highlighted that Chinese authorities are continuing to invest in networks of testing infrastructure, suggesting the likelihood of the country’s COVID Zero strategy remaining in place for the long run.
  • Supply chain issues are a source of concern for central banks as they eye rampant inflation levels.

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