Gokhan Ergocun
02 June 2026•Update: 02 June 2026
The supply of intermediate products in German manufacturing deteriorated further in May as global supply chains faced mounting pressure from ongoing geopolitical tensions, according to a report released by the Institute for Economic Research (Ifo) on Tuesday.
The Munich-based economic research institute stated that 14.2% of surveyed manufacturing companies reported bottlenecks in procuring essential raw materials and intermediate goods in May, marking an increase from 13.8% recorded in April and a sharp rise from just 5.8% in January.
The institute emphasized that the prolonged conflict in the Middle East and ongoing security restrictions on maritime shipping through strategic global trade corridors continue to disrupt the steady flow of industrial components into Europe's largest economy.
The survey highlighted that supply constraints remain particularly severe in energy-intensive sectors and industries that rely heavily on petrochemical feedstocks and oil-based intermediate goods.
In the chemical industry, 31.1% of manufacturing operations reported a critical shortage of primary materials, forcing several chemical firms to announce plans to scale back production volumes over the coming months.
The data showed that procurement difficulties also climbed to 22.9% among manufacturers of rubber and plastic products, while 17.2% of electrical equipment manufacturers encountered severe delivery delays.
The mechanical engineering sector saw its share of affected firms rise to 14.8%, while key German automotive manufacturers also reported renewed procurement issues for specialized electronic components.
The economic body concluded that the current supply trajectory demonstrates how deeply the structural stability of German industrial production remains tied to global raw material availability and international transit safety.
