Business climate in Chemical Industry dampened
**The business climate in the Chemical Industry in Germany worsened according to the Ifo-Institute in June. Previously, it had improved for four consecutive months, as the Munich researchers further stated. The barometer therefore sank to minus 4.5 points in the previous month, compared to plus 4.9 points in May. "The uptrend in the German chemical industry has therefore been interrupted," says Anna Wolf, chemical industry expert at the Ifo-Institute.
Both the assessment of the current business situation and the business expectations slid into the negative range in June. The demand for chemicals has decreased again and the order stock, according to the Ifo-Institute, was below already low levels in June. Companies have reduced production and plan to employ less personnel in the coming months.
Export expectations are again pessimistic, the indicator fell slightly into the negative range. "Chemistry is not the only concern for the German economy. The declining order stock is causing headaches for the processing industry as a whole," said Ifo expert Wolf.**
Despite the previous uptrend in the German chemical industry, the negative business climate in the Chemical Industry led to a interruption, as stated by Anna Wolf from the Ifo-Institute. Furthermore, the decline in business expectations and reduced demand for chemicals have prompted companies to scale back production and plan for less hiring in the near future.
