German industry is in an economic downturn – chemicals are no exception. There is little hope for a quick improvement.
The business climate in the German chemical industry has deteriorated further. The companies surveyed by the Ifo Institute rated their business situation in September as minus 9.3 points and their business expectations as minus 17.8 points. “Both economic and structural factors are putting pressure on chemical companies,” says Ifo industry expert Anna Wolf.
The mood in German industry is at its lowest level since June 2020. As a result, domestic demand for chemical products has declined and the lack of orders has worsened. Companies have reduced production and revised their production plans downwards. Export expectations are cautious. As a result of the weak demand, the majority of companies have to reduce their prices and they are increasingly critical of their earnings. “Companies are also struggling with the energy transition, complex bureaucracy and rising labor costs,” says Wolf.
Source: Stern
