- Mood in the chemical industry continues to decline
The business climate in the German chemical industry continues to deteriorate. The indicator recorded by the Ifo Institute fell to minus 10.5 points in July. In June, the Munich-based economic researchers had reported a figure of minus 4.5 points. "The chemical industry is being pulled down by the general economic slowdown," says expert Anna Wolf. "Hopes for a revival in demand have not been fulfilled."
Both the current situation and the outlook were assessed more negatively in July, and demand had further decreased, with order backlogs being estimated lower, the Ifo reported. As a result, companies are planning to further reduce production and implement significant job cuts in the coming months.
"More and more chemical companies in Germany are at a disadvantage in international competition in terms of price," says Wolf. "This is not just due to energy costs. Complex bureaucracy also burdens the already high labor costs. As a result, the location of Germany is losing its appeal for the chemical industry."
The ongoing economic slowdown is negatively impacting the competitive edge of the German chemical industry in the global market, according to Anna Wolf. Due to high labor costs and burdensome bureaucracy, the country is losing its appeal as a location for chemical companies.
