The chemical industries, including pharmaceuticals, witnessed a decline in quarterly production numbers of six percent. The union stated that producer prices fell by one percent, and that sales fell by 5.4 percent compared to a year ago.
This sector, which is the third largest industry in Germany, can be considered an indicator of the region’s economy as a whole because it produces components used in various sectors such as automobiles, construction, agriculture and textiles.
The Union again refused to issue forecasts for the entire year, saying that the uncertainty surrounding the conflict in the Middle East makes it impossible to make reliable forecasts, and the sustainability of the recovery this year is unlikely.
The Union repeated the pessimistic comments made by the German Ifo Institute for Economic Research yesterday, Thursday, when it said that any increase in demand or competitive advantage resulting from the Iran war will be temporary.
The conflict unexpectedly supported some European chemical companies, as it helped them outperform their Asian competitors after supply chain disruptions affected producers who depend more on raw materials from the Middle East, while Europe benefits from its proximity to final markets and the increased use of local inputs.
