Optimism in the German chemical sector significantly increases.
The vibe in the German chemical industry has drastically changed for the better. According to the Ifo Institute, the sector's sentiment index rose by a whopping 11 points in May, as revealed on Thursday. This improvement marks the first time since May 2022 when the war in Ukraine brought about a downgrade, and the index now stands at a favorable 5.8 points.
Both present situations and future projections were evaluated more favorably by companies during this period. "Chemical industry confidence in Germany is returning," said Ifo analyst Anna Wolf. She reinforced the significance of the 11-point increase by highlighting that it's the third consecutive enhancement.
The reasons behind this turnaround, according to the Ifo Institute, are high demand and better order books, although they're still at a low level. Certain companies are planning to hike their sales prices in the upcoming months. Additionally, stabilizing energy and raw material prices and the decrease in inflation have positively impacted the chemical industry. "The financial losses of the previous year still need to be recovered," mentioned Wolf. The majority of businesses are still grappling with a mediocre to terrible profit situation.
