The business climate in the chemical industry improved for the second consecutive month in September. According to data released by the Ifo Institute in Munich on Friday, the specific index rose to 5.5 points, rebounding from -2.6 points recorded in August.
Furthermore, companies are once again assessing the business situation positively, with the confidence index registering at 8.8 points. Business expectations also brightened noticeably, shifting from -15.0 points to 2.3 points. Anna Wolf, an industry expert at Ifo, noted that “customers both domestically and internationally are continuing to build up their inventories, and they are willing to accept higher prices to do so.”
This industry recovery is being supported primarily by increased exports and orders originating from the manufacturing sector. Higher expenditures on defense and infrastructure are also positively impacting the chemical industry through the corresponding demand for raw materials.
However, the order backlog is still being rated as very low. Despite an improvement compared to May 2026, the profit situation remains strained due to high cost levels. Consequently, companies are planning further staff reductions. Wolf warned that “the recovery is fragile, as the improved price competitiveness relies on temporary factors, including production disruptions and supply chain issues in the Gulf region. The inherent location disadvantages persist, and job cuts will continue.”
