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Ifo Survey: Material Shortages Worsen in German Industry

The institute links the jump to weeks of shipping limits through the Strait of Hormuz.

Overview

  • The Ifo institute, which reported Thursday, said 13.8% of German manufacturers faced material shortages in April, up from 5.8% in January.
  • Shortages hit oil‑dependent and energy‑intensive fields hardest, with chemicals at 31.1% and rubber and plastics at 22.9%.
  • Machinery reported 14.8% and electrical equipment 17.2%, and car makers also flagged more trouble.
  • Ifo tied the squeeze to the Iran war and reduced ship traffic through the Strait of Hormuz, a narrow waterway that carries about one fifth of global oil.
  • Disruptions in petrochemical inputs can spread quickly through supply chains, the institute warned, risking fast knock‑ons for production across sectors.