The number of German companies dealing with supply issues for intermediate products declined in July, the ifo Institute said Friday.
Based on the institute's latest survey, 13.7% of the polled companies reported material shortages, down from 17.2% in June. However, ifo Head of Surveys Klaus Wohlrabe warned the improvement might not last as supply chains "remain vulnerable" to the latest disruptions near the Strait of Hormuz.
The situation improved "considerably" in the chemical industry, while slight changes were seen in mechanical engineering and the automotive sector. Electronics and electrical equipment makers also saw modest drops in supply shortages, though their situations "remain tense" due to surging artificial intelligence-driven demand for memory chips.