Business Climate in Germany’s Chemical Industry Improves Slightly
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.
Although the current business situation improved for the third month in a row, companies remained dissatisfied at -19.7 points. Their expectations dropped to -5.7 points. “International competitiveness is a particular concern for energy-intensive companies such as the German chemical industry,” Wolf says. Due to the tight order situation at home and abroad, companies had reduced their production in the current month. They are also planning to reduce their sales prices. Cost savings made necessary by the tense situation on the energy and raw materials markets are likely to lead to further job cuts.
Among energy-intensive industries overall, the business climate improved slightly. However, the indicator rose significantly in the paper industry (to -31.5%) and in basic metals manufacturing (to -18.1%).
*Seasonally adjusted
