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Investing.com -- German manufacturers of electronic and optical products are experiencing more severe material shortages in October, according to data released by the Ifo economic institute on Wednesday.
The percentage of companies in this sector reporting supply bottlenecks jumped to 10.4% in October, up from 7.0% in July and 3.8% in April, the institute reported.
Klaus Wohlrabe, head of Ifo surveys, attributed the worsening situation to global restrictions on critical components. "The control mechanisms and trade restrictions for rare earths are taking their toll," he said.
Wohlrabe warned that continued deterioration of supply conditions could negatively impact Germany’s economic growth.
The electronic and optical products sector appears to be facing disproportionate challenges compared to the broader manufacturing industry.
Across all manufacturing sectors, only 5.5% of companies reported supply problems, according to Ifo data.
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