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Chemistry: Ifo: Optimism returns in the chemical industry

Chemistry: Ifo: Optimism returns in the chemical industry

For the first time in two years, the mood in the chemical industry has returned to positive territory. The index compiled by the Ifo jumped by 11 points.

The mood in the German chemical industry has brightened considerably. The corresponding index of the Ifo Institute jumped by 11 points in May, as the Munich-based economic researchers announced on Thursday. At 5.8 points, it is also back in positive territory for the first time since it plummeted in the spring of 2022 in the wake of the war in Ukraine. In May, companies assessed both their current situation and their future expectations more positively. “The confidence of the German chemical industry is returning,” said Ifo expert Anna Wolf. An increase of eleven points is “significant” and is also the third improvement in a row.

The Ifo sees the reason for the upturn as increasing demand and better filled order books – albeit still at a low level. The first companies are also planning to increase sales prices in the coming months. In addition, the stabilization of energy and raw material prices has also contributed to the upturn in the chemicals industry, said Wolf, as has the decline in inflation, positive export expectations and the general economic recovery. “The losses of previous years have not yet been made up for, however,” stressed Wolf. The majority of companies are “still struggling with a barely satisfactory to poor earnings situation.”

Source: Stern

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