Material Shortages Decrease in German Manufacturing
Material shortages have decreased in German manufacturing. In January, 48.4 percent of the companies surveyed reported problems. In December, that figure was 50.7 percent. This is a finding of the ifo Institute’s latest survey. “Given the mild winter recession that’s emerging, we would’ve liked to see a stronger decline,” says Klaus Wohlrabe, Head of Surveys at ifo. “Many companies are only slowly managing to work through their high order backlogs.”
The situation for manufacturers of machinery and equipment and in the automotive industry remained virtually unchanged. Three out of four companies in these segments continued to report bottlenecks in raw materials and intermediate products. Among food and beverage manufacturers, the figure is just under one-third. The situation in the chemical industry is continuing to ease: the share of affected companies has fallen to just under one-fourth, the lowest level since the beginning of 2021. The paper industry is feeling comparatively few effects, with just 13.8 percent reporting problems. In the manufacture of basic metals, the figure has dropped to 7.4 percent, which is as low as it was before the shortage crisis began.
