In the private sector, one effect of rising energy prices can be seen directly: Consumption is slowing down - it is hitting retailers and consumer goods manufacturers - all the things you don't necessarily have to afford are being put on the back burner for the time being. So it will hit the clothing stores, but also, for example, the hospitality industry, which is already shaken by Corona.
The main sufferer from energy prices, however, is first and foremost energy-intensive industry. Here, costs are rising massively. Many sectors are being hit hard across the board.
Building materials, chemicals, glass, metals, paper and steel are at the beginning of the value chain, making a wide range of secondary products more expensive. Energy-intensive industries occupy a key position in our economy. A lot of energy is needed to produce basic chemicals, aluminum, various metals, insulation and plastics as well as, paper and cardboard, glass, glass fibers, steel, cement, lime, gypsum and ceramics. This directly or indirectly affects the entire manufacturing industry.
For the construction industry, this means further subdued demand, after first tight capacities and then requirements due to sustainability led to price increases. We will see a further meltdown in construction activity here. Construction prices are rising much faster than rents, making building unattractive. In the long term, this will lead to overcapacity in all areas of the construction industry with corresponding liquidity consequences and the need for adjustments
All packaging is becoming more expensive, including consumer goods.
Basic chemicals are contained in many products or are necessary for product manufacture, which further drives up prices across the board and weakens demand. In the automotive industry, we are already seeing massive price increases, albeit currently more due to shortages of certain precursors (semiconductors).