German chemical industry’s business climate continues to deteriorate, according to the Ifo Institute’s index, which sank to -18.2 points in February, following a -14.8 point decline in January.
While the assessment of the current business situation improved, from -17.6 points in January to -12.9 points, expectations for the future fell significantly to -23.3 points, after -12.0 points in the previous month. “The chemical industry is in a crisis: high energy costs, bureaucratic hurdles, weak demand and increasing trade barriers are weighing on it in global competition” said Ifo sector expert Anna Wolf.
Companies are still evaluating their order stock as extremely low. Export expectations also slipped into the negative range. Moreover, the chemical industry is losing ground in international competition, both within and outside of Europe. “Donald Trump’s customs plans are affecting the export business” Wolf said. In the face of these burdens, companies are planning to reduce production and further cut personnel.