German chemicals lobby VCI says no sector turnaround in sight after weak Q3
Germany's chemical industry saw a decline in production, sales and prices in the third quarter and remains under pressure from overcapacity, high operating costs and a difficult economic environment, industry lobby VCI said.
Quarterly production fell 1.5% in the chemical industry, including pharmaceuticals, while producer prices declined 0.6%, the German chemicals association said.
The third-largest industry of Europe's powerhouse Germany can be seen as a bellwether for the broader region's economy, as it produces material components used across sectors ranging from automotive and construction to agriculture and textiles.
"The chemical industry ... is struggling on all fronts. Production, sales, prices, capacity utilization: everything is in decline," VCI Managing Director Wolfgang Grosse Entrup said in a press release.
A sector turnaround is "not in sight", VCI added, as it reiterated its gloomy 2025 forecasts, with production volumes expected to fall by 2% and industrial sales by 1%.
Industry grows impatient for political changes. The chemical industry lobby said there was "no optimism" regarding the political measures it has been calling for, noting that special funds and recent economic policy adjustments by the German government have failed to provide meaningful relief for the sector.
"Something really has to happen now, and we don't have that time," Grosse Entrup told a press conference.
"The alarm bells are ringing ever louder for us in light of the current figures. Yes, it's red alert and the worst part is, we simply don't expect the business situation to improve in the coming months," he added.
Germany lacks a convincing strategy to restore industry confidence, while disagreements over priorities within the coalition government have led to declining private investment and weakening potential growth, Grosse Entrup said.
"The initial goodwill towards the new government has unfortunately been exhausted," and the industry is growing impatient, he said.
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