Sentiment in Germany’s Chemical Industry Brightens Further
The ifo Business Climate in Germany’s chemical industry improved further in March. It rose to minus 10.5 points, up from minus 17.9 points* in February, according to the ifo Institute survey. There was a particular improvement in business expectations, which rose above zero for the first time since March 2022. Fewer companies also rated their current business situation as poor. “Business appears to be stabilizing in important customer industries such as rubber and plastics processing, the automotive industry, and the construction sector,” says industry expert Anna Wolf of the ifo Institute.
With demand being assessed as less weak than at the beginning of the year, more companies want to expand their production. At the same time, more companies are expecting to cut the prices of their products, as their international competitive position has deteriorated further. “While this may boost demand, it puts even more strain on their already tense earnings situation,” Wolf says.
In the supply of intermediate products, 20.2 percent of the companies reported bottlenecks. That figure had peaked in December 2021 at 73 percent.
*Seasonally adjusted
