Economy: Sentiment in the chemical industry continues to decline

Economy: Sentiment in the chemical industry continues to decline

The business climate in the German chemical industry continues to deteriorate. This could also have an impact on employment in the coming months.

The business climate in the German chemical industry continues to sink into negative territory. The indicator compiled by the Ifo Institute fell to minus 10.5 points in July. In June, the Munich-based economic researchers reported a reading of minus 4.5 points. “The chemical industry is caught up in the general economic slowdown,” says expert Anna Wolf. “Hopes for a revival in demand have not been fulfilled.”

Both the current situation and the outlook were assessed much more negatively in July, and demand continued to decline and the order backlog was estimated to be lower, according to the Ifo. As a result, companies would further reduce their production and were planning significant staff cuts in the coming months.

“More and more chemical companies in Germany are losing out on price when it comes to international competition. This is not only due to energy costs,” says Wolf. “Expensive bureaucracy is also putting a strain on the already high labor costs. This means that Germany is becoming increasingly less attractive as a location for the chemical industry.”

Source: Stern

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