Business Climate in the Chemical Industry Plummets
The ifo Business Climate in Germany’s chemical industry deteriorated drastically in August. According to the ifo Institute survey, the indicator fell to minus 33 points, down from minus 14 points in July. Assessments of the current business situation fell particularly sharply: for the first time since September 2020, companies rated their business negatively at minus 8 points, down from plus 22 points in July. Expectations slipped very low to minus 55 points, down from minus 45 points in July. This is their lowest level since 1991.
Plans for production declined sharply, with that indicator dropping to minus 38 points in August, down from minus 27 points in July. The war in Ukraine is putting considerable strain on the chemical industry, as natural gas accounts for a large share of the industry’s energy consumption.
The only situation to improve somewhat in August was the shortage of materials, which eased here as in the rest of the manufacturing sector: 50 percent of the companies surveyed reported supply problems, compared to 54 percent in July.
