Shortages cause ‘bottleneck recession’ for German industry
FRANKFURT, Germany (AP) — Shortages of semiconductor chips and other raw materials are continuing to hit Germany’s manufacturers, as bottlenecks leave companies in Europe’s biggest economy struggling to fill orders. Trouble getting the key components helped send the closely watched Ifo index lower for September. That’s the third drop in a row. The index surveys companies about their outlook and it’s regarded as a sign of where the economy is headed. But major manufacturers such as auto firms Daimler, BMW and Volkswagen have all experienced trouble getting the electronic chips they need. Other materials are in short supply as well. The darkening mood among business comes just days ahead of Germany’s national election on Sunday.