Morale across Germany's chemical industry weakened further in May, as businesses noted that the core structural issues remain unaddressed amid the "temporary" economic upswing.
The business climate index dropped to -30.2 points from -28.6 points in April, the ifo Institute said Thursday. The indicator for the current business situation improved to -17.5 points from -25.8 points, as global supply chain disruptions are still fueling demand for chemical products from certain segments of the industry.
Meanwhile, the expectations index tumbled to -42 points from -31.3 points previously, and export expectations "deteriorated significantly" to -15.7 points from -2.0 points. Against this backdrop, companies intended to further production cuts and layoffs.