BERLIN, March 30 Reuters German manufacturers are seeing fewer material shortages but Europe39;s largest economy is still a long way away from an ideal supply situation, according to an economic survey published on Thursday.

In March, 41.6 of the companies reported problems, down from 45.4 in February, the ifo institute said.

This easing will have a positive impact on industrial production in the months ahead, said Klaus Wohlrabe, head of surveys at ifo.

However, there has not yet been a fundamental reduction in procurement barriers in some of Germany39;s key manufacturing industries, the institute said in a statement.

More than 60 of manufacturers of machinery and equipment, electrical and electronics companies, and automakers reported bottlenecks in raw materials and intermediate products, according to the survey.

Reporting by Rachel More; Editing by Bernadette Baum

Source Reuters