Material Shortages Ease in German Manufacturing
The shortage of materials in German manufacturing has continued to ease. In February, 45.4 percent of the companies surveyed reported problems. This is the lowest level since April 2021. In January, the figure was 48.4 percent. This is a finding of the ifo Institute’s latest survey. “Many companies still can’t ramp up production as desired,” says Klaus Wohlrabe, Head of Surveys at ifo. “Fortunately, however, there are currently no signs that material shortages could worsen again.”
A broad recovery in German manufacturing has yet to set in. More than 70 percent of manufacturers of machinery and equipment, electrical and electronics companies, and automakers reported bottlenecks in raw materials and intermediate products. In the chemical industry, the situation has continued to ease. The same applies to other energy-intensive industries such as paper, plastics, and glass, where the shares of companies affected are now below 20 percent.
At present, the paper industry is one of the least affected, with just 9.1 percent reporting problems.