German Chemical Industry Remains in a Gloomy State
According to the Ifo Institute, the business climate in the German chemical industry remains subdued, with the corresponding index rising only slightly to -11.4 points in December, following -12.9 points in November.
The judgments on the current business situation have worsened, now standing at -14.2 points, after -8.8 points in November. In contrast, business expectations increased to -8.6 points, after -17 points in November.
“The situation of chemical companies remains tense overall at the turn of the year” said Ifo sector expert Anna Wolf.
German chemical companies are struggling in international competition due to high burdens from taxes, bureaucracy, and energy costs. Moreover, an unfavorable order situation is affecting their businesses. The assessment of the order stock fell to a new low since 2009. The capacity utilization of the chemical companies has noticeably decreased. It stood at just 75.4 percent in 2024, compared to 86.0 percent in 2021. Chemical companies continue to plan further job cuts.