Output volume of German chemical makers down revised to rise at 1%

18-Sep-08

High oil prices, a stronger euro vs the dollar and a slowdown in the United States economy in this quarter have taken their toll on performance of Germany-based chemical makers. Output volume of Germany-based chemical makers has been down revised to rise at 1%, down from a previous prediction of 2.5% and a rise of 4.3% recorded in 2007. German chemicals trade group VCI has also down revised its forecast for full-year sales growth for the industry to 4.5% from 5.5% sales growth in 2008 following a rise of 7.1% in 2007. Chemicals demand is estimated to be weak- stagnating in the remainder of the year as German manufacturers face a weaker economy in USA as well as European nations. The onset of economic slowdown in Asia, where an investment boom had so far sustained a rise in orders for German chemical suppliers, will also contribute to diminishing demand.