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"dwindling supply" is correct and usable in written English.
You can use it to refer to a decreasing or limited amount of something. For example: "The dwindling supply of fresh water is a growing concern."
Exact(56)
She doesn't want to talk about the dwindling supply of roles for women over 40.
Hence the dwindling supply.
The city relies heavily on a dwindling supply of groundwater.
The dwindling supply has led to pronounced spikes in price.
Auction houses must also confront a dwindling supply of art.
Increasing demand and dwindling supply of crude oil have spurred efforts towards enhancing heavy oil recovery.
Price inelasticity of vital resources (water, food) in the context of dwindling supply.
Similar(4)
possibly could, and so would a more equitable distribution of the Earth's dwindling supply of freshwater.
As a result of tab overload, and my ever-dwindling supply of brain cells, I often suffer from Google Amnesia.
The few companies still trawling for the ever-dwindling supply of deep-sea fish are reaping huge profits and they won't give those up easily".
An ever-dwindling supply of natural resources.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com