Situation in Germany’s Chemical Industry Continues to Deteriorate
The current business situation in Germany’s chemical industry deteriorated further in October. The indicator fell to minus 19.9 points, down from minus 11.7 points in September, according to the ifo Institute survey. “The chemical industry cannot escape the tense economic environment,” says Anna Wolf, industry expert at the ifo Institute.
Order books and demand in the chemical industry continue to decline. “The high cost of materials can no longer be easily passed on through sales prices and is weighing on earnings in the chemical industry,” Wolf says. More and more companies rate their earnings situation as poor. The indicator for the second half of 2022 fell to minus 28.5 points, down from plus 8.3 points in the first half, and is no better than it was during the coronavirus pandemic in 2020. The supply of intermediate products also remains critical, say 49.1 percent of the companies.
At least expectations have not deteriorated further, for the first time in four months. They rose to minus 52.1 points, up from minus 57.0 points in September.
