The business climate in Germany’s chemical industry has deteriorated sharply in March. The Ifo Institute’s industry indicator slipped to -25.0 points, down from -16.7 in February. Companies judged their current commercial situation at -31.9 points, a marked decline from -21.2 the month before, while outlooks fell from -12.1 to -17.9. “The repercussions of the Middle‑East conflicts are striking the already weakened chemical sector with full force” said Ifo industry expert Anna Wolf.
Already before the Iran war, the chemical sector faced a pronounced shortage of orders that worsened further in March. Rising costs for crude oil, raw materials and energy have compounded the pressure. To absorb this cost burden, firms plan to raise prices significantly. At the same time, employment expectations plunged to a historic low of -32.1 points. “Companies can influence these difficult conditions only slightly; their remaining option is to cut jobs” Wolf added.