Business Climate in Germany’s Chemical Industry Brightens Only Marginally
The ifo Business Climate in Germany’s chemical industry has improved only slightly. The indicator climbed from minus 28.1 points* in June to minus 25 points, according to the ifo Institute survey. The industry’s assessment of its business situation and expectations remained extremely negative at -26.1 and -23.9 points, respectively. “Although the rapid decline in the chemical industry has stopped for now, there’s no sign of a recovery happening any time soon,” says industry expert Anna Wolf of the ifo Institute.
The companies surveyed reported that demand for chemical products is lower than in June: this indicator dropped to -21.5 points, down from -16.7 points. Assessments of order backlog fell to -54.6 points – the lowest level since the financial crisis. Production plans also plunged to -23.1 points, down from -13.1 points in June. “It’s not only the sharp rises in energy prices forcing the chemical industry to curb production. Weakening global demand is also having an effect,” Wolf says. One of the few positive developments is in the supply of intermediate products: only 7.6% of companies still reported bottlenecks.
*Seasonally adjusted
Data
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