Material Shortages in German Manufacturing Ease Again

German manufacturing is seeing fewer material shortages. In August, 24.4 percent of the companies surveyed reported shortages, down from 29.5 percent in July. This is a finding from the ifo Institute’s latest survey. “The situation is trending more and more toward pre-crisis levels,” says Klaus Wohlrabe, Head of Surveys at ifo. “Business problems are now shifting from the supply side to the demand side.”

For the first time since July 2021, the percentage of companies with supply problems has fallen below 50 percent in every industry. In more than half, the value has even fallen back below the long-term average. The automotive industry continues to be the hardest hit, with around 49 percent of companies reporting supply bottlenecks. In the electrical and electronics industry, the share has fallen below 40 percent. There are no fundamental problems in, for example, the beverage industry (7.2 percent), the paper industry (2.1 percent), or in basic metals manufacturing. Completely without worry are manufacturers of leather products.