Economic prospects
Mood in chemistry crashes – bad order situation
The business climate index has fallen to the lowest level in about two years. The evaluation of the order input was not as bad as it was up to date.
The mood in Germany’s chemical industry has crashed and has not been as bad as it has been in around two years. In July she dropped by 9.7 to minus 19.2 points, as the Munich IFO Institute reports. The expectations that turned from plus 8.6 to minus 9.2 were particularly strong. “The temporary hope of chemistry for an economic recovery has evaporated,” says IFO expert Anna Wolf.
The weak economy in industry in general also contains the demand for chemistry products, according to the IFO. This is noticeable in the order stock, which is rated as bad as in 2009 – during the financial crisis.
However, the survey on which the current index is based was ended in front of the customs deal between the EU and the USA. How this will affect the future assessments of the companies is difficult to predict, says Wolf.
The industry association VCI had commented on it rather skeptically at the end of July and also says Wolf: “Although the industry was able to easily improve its competitive position, the new tariffs on chemicals and pharmaceuticals damage the US business significantly.”
Even in the survey period, the companies also planned further job cuts: the expectations of employment decreased.
dpa
Source: Stern
