Germany's industry sentiment brightens – survey

29 December 2009 16:07  [Source: ICIS news]

TORONTO (ICIS news)--Germany’s industry sentiment has brightened markedly from a year earlier, according to a survey of 44 industry associations by economic research group Institut der deutschen Wirtschaft (IW) on Tuesday.

In the annual survey, 27 associations, including chemicals, plastics and rubber, said the situation had improved compared with 2008/2009. Last year, none of the associations reported improvements.

“The worst is over, and most industries are seeing an upward trend,” said IW director Michael Huther.

However, he warned that many producers would continue to struggle well into 2010.

In terms of overall performance, 20 of the 44 associations expected to increase production or sales in 2010 from 2009, the survey found. However, 12 associations, led by shipbuilding, expected a decline.

Despite the improved sentiment, employment was expected to decline in 2010, with 27 associations, including chemicals and plastics, saying member firms would likely reduce the number of jobs next year.

Only the leather industry expected to increase employment, driven by increased demand from the automobile sector.

Meanwhile, only nine of the 44 industry associations expected member firms to increase investments next year while 24 associations, including chemicals, expected to keep investments on par with 2009.

The full survey report is available, in German, on the institute’s website.

Germany's chemical industry association VCI said earlier it expected production to rise by 5% in 2010 alongside some modest price increases, of about 1%, driven by higher feedstock costs. Production declined by 10% in 2009 from 2008.

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