Business Climate in the German Chemical Industry Stagnates at a Low Level
The business climate in the German chemical industry stagnated at a low level in January. The value slipped to -15.9 points, down from -15.4 points* in December. Companies rated their current business situation at -17.1 points, which is slightly worse than in the previous month. At -14.6 points, the level of pessimism in their business expectations remained virtually unchanged. “Germany’s chemical industry is still very much in crisis,” says industry expert Anna Wolf of the ifo Institute.
The demand situation in the German chemical industry deteriorated further from December to January; companies rated their order backlog as very low. Hopes for more orders from abroad have also been largely dashed. Although the competitiveness of German chemical companies compared to other European and non-European countries has not decreased any further, it is still considered a disadvantage. To reduce costs, chemical companies have been cutting staff since March 2023. Employment expectations for the coming months deteriorated further.
The business climate clouded over in other energy-intensive industries as well. The decline was particularly sharp in coke and refined petroleum production, basic metals manufacturing, and among manufacturers of glass and ceramics. Only in the paper industry did the indicator hardly change, although it remained at a low level.
*Seasonally adjusted
