Finance
German Chemical Industry Sentiment Ticks up in January Despite Weak Conditions, Ifo Says
Published by Global Banking & Finance Review®
Posted on February 2, 2026
1 min readLast updated: February 2, 2026
Quick Summary
German chemical industry sentiment improved in January, with order backlogs rising, though current conditions remain weak, Ifo survey shows.
Slight Improvement in German Chemical Industry Sentiment for January
Overview of Chemical Industry Sentiment
Feb 2 (Reuters) - Business confidence in Germany's chemical industry improved slightly in January as demand stabilised and order backlogs rose for the first time in several months, even as current conditions remained weak, an Ifo survey showed on Monday.
The Ifo index for the sector edged higher, reaching -23.5 points, up from seasonally adjusted -24.6 points in December, while expectations brightened, rising to -11.4 points from a seasonally adjusted -19.3 the prior month.
However, the current situation deteriorated, falling to -34.9 points, down from seasonally adjusted -29.7 points in December.
Current Business Conditions
"The chemical industry is somewhat less pessimistic about the future, but current business remains weak," said ifo industry expert Anna Wolf.
Future Expectations
Despite the positive signals, companies still plan to scale back production in the coming months and continue reducing staff, Ifo said.
"The ongoing price pressure and uncertainty in foreign trade due to the threat of tariffs are weighing on the chemical industry," said Wolf.
(Reporting by Anastasiia Kozlova, Editing by Friederike Heine)
Key Takeaways
- •German chemical industry sentiment improved in January.
- •Ifo index rose to -23.5 points from -24.6 in December.
- •Order backlogs increased for the first time in months.
- •Current conditions remain weak despite improved sentiment.
- •Companies plan to reduce production and staff.
Frequently Asked Questions about German chemical industry sentiment ticks up in January despite weak conditions, Ifo says
1What is business confidence?
Business confidence refers to the degree of optimism or pessimism that business leaders feel about the overall economic situation, which can influence their investment and hiring decisions.
2What is an order backlog?
An order backlog is a list of customer orders that have been received but not yet fulfilled. It indicates demand and can affect production planning.
3What is the Ifo index?
The Ifo index is a key economic indicator in Germany that measures business sentiment and expectations in various sectors, providing insights into economic trends.
4What are production plans?
Production plans outline the strategies and schedules for manufacturing goods, including the quantity and timing of production to meet market demand.
5What is price pressure?
Price pressure occurs when the costs of goods or services rise, which can affect profit margins and consumer purchasing behavior.
