Overview
- The ifo Institute's September survey showed the business‑climate index for the German electrical industry rose 8.3 points to 24.8, its best reading in years.
- The measure of current business conditions jumped 14 points to 29, signaling a much stronger assessment of the sector's present situation.
- Companies reported an 'extraordinarily positive' demand trend with significantly more new orders and improved order backlogs, leading many firms to plan production expansion and expect foreign‑market support.
- Roughly 40% of firms said they lack intermediate inputs such as semiconductors, a shortfall the ifo warned could become a bottleneck for output.
- A growing share of firms intend to raise selling prices, which could feed into consumer prices and limit growth even as the sector, called a 'Konjunkturlokomotive' by ifo expert Klaus Wohlrabe, helps lift wider industry performance.