31 August 2012 11:01 [Source: ICIS news]
LONDON (ICIS)--The global economic environment for chemicals is likely to continue to decline into the third quarter of the year, with key German, Chinese and US indicators all pointing to a difficult three months, global analyst Bernstein Research said on Friday.
According to the firm, the US and Chinese price managers indices (PMIs) both forecast a deteriorating environment during the third quarter, with the US chemicals industry contracting in July and Chinese manufacturing continuing to stall.
The German Chemicals IFO survey, an index of German business confidence, reported a continued slump from the negative outlook of last quarter, driven by expectations of flat production levels over the next three months, and low capacity utilisation. Orders on hand remained low, and inventories are expected to rise.
“Leading indicators show the environment deteriorating into Q3,” said Bernstein.
Bernstein said that European chemical volumes had declined sequentially by 0.6% in June, but that the overall 2% year-on-year decline was less pronounced than the 3% drop recorded in May.
US chemicals sector volumes in July were down 0.1% on the previous month, but marked a 5% improvement from volumes in July 2011.
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