German companies warn that Middle Eastern conflict will lead to "massive cost increases"

The German Chamber of Commerce and Industry warned on the 21st that the Middle East conflict is causing a “significant chain reaction” on the German economy, bringing “huge cost increases” to German businesses. DPA reported, citing the German Chamber of Commerce and Industry, that the sudden price hikes and daily fluctuations in procurement prices make it almost impossible for companies to plan based on reliable data. A survey conducted by the German Chamber of Commerce and Industry in the first half of April among about 2,400 German companies showed that 83% of businesses said their operations are negatively affected by the conflict, with the manufacturing sector reporting a rate as high as 87%. The two most frequently mentioned problems by surveyed companies are rising transportation costs and soaring energy prices. Additionally, 58% of companies believe the difficulty lies in the rising prices of raw materials and other materials. Falk Träer, chief analyst at the German Chamber of Commerce and Industry, said, “The wave of costs is sweeping through all businesses.” The German Chamber of Commerce and Industry also stated that many companies have responded to the current difficulties by raising prices and cutting investments. Half of the surveyed companies said they are passing on additional costs to customers, and 37% said they are delaying investments or slowing project progress. (Xinhua)