Dr. Anna Wolf

The business climate in Germany’s chemical industry improved in March. The index rose to -10.5 points, up from -15.5 points* in February. Business expectations improved sharply, with the indicator climbing to -2.9 points, up from -14.9 points in February. “Although the order situation in the chemical industry still leaves a lot to be desired, companies seem to have weathered the worst of the crisis,” says industry expert Anna Wolf from the ifo Institute.

In February, the business climate in the German chemical industry brightened a little. The indicator rose to -15.7 points, up from -16.1 points* in January, due to better assessments of the current business situation. Expectations, however, turned somewhat more pessimistic again. “The climate in the German chemical industry is still rough, but there have also been some surprising rays of hope,” says industry expert Anna Wolf of the ifo Institute.

The business climate in the German chemical industry stagnated at a low level in January. The value slipped to -15.9 points, down from -15.4 points* in December. Companies rated their current business situation at -17.1 points, which is slightly worse than in the previous month. At -14.6 points, the level of pessimism in their business expectations remained virtually unchanged. “Germany’s chemical industry is still very much in crisis,” says industry expert Anna Wolf of the ifo Institute.

The ifo Business Climate in Germany’s chemical industry worsened in December 2023. It fell to -15.2 points, down from -13.0 points* in November. “Although the chemical industry seems to have bottomed out, there is still no sign of an impending upturn,” says industry expert Anna Wolf from the ifo Institute. Companies were less negative about their current business situation in December than in the previous month. However, their business expectations deteriorated significantly to -14.6 points, down from -6.5 points* in November.

The business climate in Germany’s chemical industry improved somewhat in November, with the indicator rising to -12.8 points, up from -14.7 points* in October. This means the mood among chemical companies remained subdued, according to the latest ifo survey. “The long-awaited measures in the energy package have obviously not met the chemical industry’s hopes,” says industry expert Anna Wolf of the ifo Institute.

The business climate indicator for the German chemical industry rose only a little in October. It remained in negative territory at -15.3 points, up from -18.7 points* in September. “Germany’s chemical industry continues to face an extremely challenging business environment,” says industry expert Anna Wolf of the ifo Institute.

The ifo Business Climate in Germany’s chemical industry deteriorated somewhat in September to -19.3 points, down from -16.3 points* in August. While assessments of the business situation remain virtually unchanged, business expectations are now gloomier. “The chemical industry faces a great many challenges,” says industry expert Anna Wolf of the ifo Institute.

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.

In Germany, 13.3% of companies are currently using artificial intelligence (AI), and 9.2% are planning to use it. A further 36.7% of all companies surveyed are discussing potential use cases. “The majority of all companies in Germany are currently looking into AI,” says industry expert Anna Wolf of the ifo Institute. AI-based systems process large amounts of data using algorithms to make quick decisions via automated data analysis.

Among German companies, 46.5% are currently using cloud computing technology for their business processes, while 11.1% are planning to. A further 18.2% of all companies surveyed are still discussing whether or not to introduce the technology. “Cloud computing has clearly established itself as a key component of modern IT infrastructure at German companies,” says industry expert Anna Wolf of the ifo Institute. In cloud computing, IT resources such as software, storage, and computing power are made available via the internet. Companies use this technology to optimize their business processes.

The ifo Business Climate in Germany’s chemical industry deteriorated noticeably in June. The indicator fell to minus 28.3 points, down from minus 12.5 points* in May, according to the ifo Institute survey. Business expectations in particular took a further dip. They fell to minus 25.6 points, down from minus 5.5 points in May. “High energy and production costs aren’t the only things putting a strain on business in the chemical industry. The order situation is continuing to worsen for many companies due to persistently weak global demand for chemical products,” says industry expert Anna Wolf of the ifo Institute.

Among German companies, 6.9% are currently using or are planning to use blockchain technology for their business processes. This is the finding of a recent survey conducted by the ifo Institute on behalf of the Hanseatic Blockchain Institute. Introducing the technology is a subject of discussion at 18.7% of all companies surveyed.

The ifo Business Climate in Germany’s chemical industry worsened slightly in May. The indicator fell to minus 11.1 points, down from minus 3.9 points* in April, according to the ifo Institute survey. Business expectations in particular took a major dip, with that indicator dropping to minus 4.1 points from 11.4 points in April. The majority of companies once again described their current situation as poor. “The clouds dampening the business climate hang over all the chemical industry’s key customer sectors: the Business Climate Index fell in manufacturing and in construction,” says ifo’s industry expert Anna Wolf.

The ifo Business Climate in Germany’s chemical industry brightened in April. It rose to minus 3.1 points, up from minus 10.5 points* in March, according to the ifo Institute survey. There was a particular improvement in business expectations, with that indicator rising to 13.3 points – its highest level since December 2021. However, the majority of companies surveyed described their current situation as poor. “The chemical industry is deriving confidence from the easing in supply bottlenecks and lower energy prices. But this industry’s current order situation remains weak,” says industry expert Anna Wolf of the ifo Institute.

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.

The ifo Business Climate in Germany’s chemical industry brightened somewhat in February. It rose to minus 18.5 points, up from minus 25.6 points in January, according to the ifo Institute survey. “Germany’s chemical industry is not yet out of the woods. While companies’ expectations were less pessimistic in February, more companies were dissatisfied again with their current situation than in January,” says industry expert Anna Wolf of the ifo Institute.

The ifo Business Climate in Germany’s chemical industry deteriorated somewhat in January: it fell to minus 26.0 points, down from minus 23.7 points in December 2022, according to the ifo Institute survey. Assessments of the current situation as well as expectations for the months ahead worsened.

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 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. 

The ifo Business Climate in Germany’s chemical industry deteriorated further in September. The indicator fell to minus 36.7 points, down from minus 33.1 points in August, according to the ifo Institute survey. “Both assessments of the current business situation and expectations for the months ahead slipped yet further into the negative,” says ifo industry expert Anna Wolf. Expectations fell to their lowest point since 1991.

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.

The business climate in Germany’s chemical industry deteriorated significantly in the past twelve months. Business expectations fell to a low of minus 44.4 points in July 2022, finds an ifo Institute survey. In the same month the previous year, the figure was plus 11.8 points. The war in Ukraine is further exacerbating the tense situation in the industry. “Natural gas accounts for 44 percent of energy consumption in the chemical industry. It also plays an important role in product manufacturing: around 30 percent of all chemical products require the use of natural gas,” says ifo industry expert Anna Wolf. 

Amid fears of a shortage of natural gas, the expectations of German chemical companies deteriorated significantly in June, with the indicator plummeting to minus 40.3 points, down from minus 27.2 points in May. This is the result of the latest survey conducted by the ifo Institute. “There is a lot of uncertainty about a Russian gas embargo and the consequences this would have for the chemical industry,” says ifo industry expert Anna Wolf.