Despite the positive trend, ifo warned that risks remain. Rising demand from the artificial intelligence sector is prompting chipmakers to prioritise AI-related applications, increasing pressure on specific intermediate products and production capacities. This could lead to renewed strain in certain industrial segments, suggesting that a sustained stabilisation of supply chains is not yet assured, ifo said in a press release.
By sector, shortages were most pronounced in the manufacture of wearing apparel, where 20.6 per cent of companies reported constraints. This compared with 7.5 per cent across manufacturing, 6.7 per cent in machinery and equipment, and 1.3 per cent in printing products. Textile manufacturers reported no shortages in December.
German manufacturing saw improved availability of intermediate products in December, with companies reporting supply difficulties falling to 7.5 per cent from 11.2 per cent in November, according to the ifo Business Survey.
While shortages eased across most sectors, apparel remained most affected.
ifo warned that rising AI-driven chip demand could renew pressure on specific inputs.
“The availability of intermediate products in manufacturing has improved overall,” said Klaus Wohlrabe, head of surveys at ifo. He added, however, that supply chains still need to be monitored closely despite the easing.
Fibre2Fashion News Desk (SG)