LONDON (ICIS)--Short-term confidence in the European building block chemicals sector was strong this month but future sentiment fell sharply from July, analysis of the August ICIS Chemical Market Confidence Index showed on Tuesday.
Current indicators for business conditions, order book volumes and profitability rose significantly while future indicators for the same three factors moved in the opposite direction.
Despite these volatile shifts in confidence from July, all indicators were in positive territory (see chart below).
Europe building block chemicals last four months
The overall CMCI for August shows improving short-term business conditions but lower long-term confidence as economic and political uncertainty continue to weigh down the European market.
The newly established ICIS Europe CMCI aggregates sentiment from hundreds of petrochemical market players actively involved in price negotiations across more than 60 different markets.
The Europe CMCI runs from +100, to -100, with zero on each index representing neutral, or uncertain conditions, a negative score indicating bearish expectations and a positive score representing bullish expectations. The indices also gather sentiment on the comparison between the current situation and the situation across the past 12 months to give a complete picture of current market conditions and confidence. The information is gathered in the third week of each month. A full methodology is available on request.
For more details on the overall Europe CMCI data, click here