Ifo: Business climate in the German chemical industry remains gloomy
In turn, the order situation continued to tighten. "The business environment for the German chemical industry remains very challenging," said Ifo industry expert Anna Wolf.
The majority of companies continue to assess the current business situation very unfavorably at minus 25.5 points, compared to minus 25.4 in September. Chemical companies have revised their business expectations slightly upwards, but they remain cautious.
"There is planning uncertainty in the chemical industry due to the ongoing discussion about the industrial electricity price," said Wolf. "Although electricity prices have fallen again, they are still high by international standards." The lower production costs have therefore not yet had an impact on production.
In addition, the order situation remained tense, according to 48.2% of companies in the sector in October. In July, the figure was only 40.9 percent. "Competitive pressure from non-European countries is continuing to increase," said Wolf. Capacity utilization is also a concern for the chemical industry; at 75.1%, it is well below the long-term average of 80.8% since 2020. This is one of the reasons why the industry is planning further job cuts.
Despite the recent decrease in electricity prices, they still pose a significant challenge in the German chemical industry's business climate, making planning uncertain and keeping production costs high. The business climate in this sector, as reported by Ifo expert Anna Wolf, remains extremely challenging, with a majority of companies viewing the current situation very negatively.
Source: www.ntv.de
