German Chemical Industry Sentiment Improves as Order Backlogs Rise in January

Business confidence in Germany's chemical industry rose slightly in January as demand stabilized. However, weak current business and rising costs persist.

Insights:
The Ifo Institute reported on February 2, 2026, that business confidence in the chemical industry in Germany DEDEsaw a slight improvement in January. The Ifo index for the sector reached -23.5 points during the month, following a seasonally adjusted -24.6 points in December. While the overall sentiment showed signs of stabilizing, the industry continues to grapple with a difficult environment marked by weak current business conditions and persistent price pressures.
A general view of the Leuna-Harze plant, a producer of chemical industry commodities, at the InfraLeuna industrial site in Leuna, Germany, April 2, 2025. REUTERS/Lisi Niesner
A general view of the Leuna-Harze plant, a producer of chemical industry commodities, at the InfraLeuna industrial site in Leuna, Germany, April 2, 2025. REUTERS/Lisi Niesner
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