German factory orders rebounded in September amid greater demand for investment goods outside the euro area, hinting at a boost to production once supply bottlenecks clear.

Orders climbed 1.3% follow an 8.8% slump the previous month. Economists had predicted a faster gain.

Germany’s industry-focused economy has been benefiting from recoveries across the world, though a squeeze on material and transportation has damped momentum in recent months. Companies are facing unprecedented delivery times for inputs and are increasingly forced to pass on higher costs to customers.

More than 70% of companies surveyed by the Ifo Institute reported shortages in October, and many expect issues to persist well into next year. The number of industry workers on state wage support rose last month amid supply constraints.

In September, demand for investment goods rose nearly 4%. Car and machinery makers reported steep order gains.

Economists increasingly predict Germany’s recovery will be pushed into 2022. The government in Berlin cut its growth outlook for 2021 last week to 2.6%, compared with an earlier forecast of 3.5%, and raised next year’s estimate.