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Ifo: German Chemical Industry Sees 'Significant' Improvement in Business Climate in June

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Sentiment in Germany's chemical industry "significantly improved" in June, as energy prices and costs of certain intermediate products dipped amid easing tensions in the Middle East.

The business climate index jumped to -17.8 points from -29.0 points in May, the ifo Institute said Wednesday. The indicator for the current business situation "considerably" improved to -2.9 points from -16.5 points, while the expectations index rose to -31.5 points from -40.7 points.

ifo industry expert Anna Wolf attributed the sector's stabilized production and increased June orders to a temporary trade shift, with Middle East supply disruptions redirecting demand to German chemical producers. Still, the institute noted that supply constraints for intermediate goods remain, with most manufacturers expecting prices to begin climbing again soon.

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