Business Climate in the Chemical Industry Improves in Germany
The ifo Business Climate in Germany’s chemical industry improved in December. It rose to minus 23.9 points, up from minus 30.9 points in November, according to the ifo Institute survey. There was a marked climb in expectations for the months ahead, from minus 37.7 points to minus 23.8 points – the third successive improvement in this indicator. “The chemical industry is reacting positively to an easing of tensions in the energy market,” says industry expert Anna Wolf of the ifo Institute.
The supply of intermediate products also improved, with only 30.6 percent of companies still reporting bottlenecks. That is the lowest percentage since this question was first asked in August 2021. Despite this, the number of companies looking to increase production is still small. The corresponding indicator remained negative in December. “Also, demand for chemicals remains weak,” Wolf says. As a result, fewer companies are planning to pass on rising purchase prices to their customers.
