Summary This has been stated by VCI president Karl-Ludwig Kley in federation’s quarterly report.
FRANKFURT (AFP) - Germany s chemicals industry federation VCI downgraded on Wednesday its full-year sales forecasts after business disappointed in the third quarter.
"In the chemicals sector, business in the third quarter was worse than in the second quarter," VCI president Karl-Ludwig Kley said in VCI s quarterly report.
"In contrast to the trend so far this year, foreign sales declined for the first time. This confirms that the global economic recovery isn t yet on a stable footing," Kley said.
While VCI said it was sticking to its forecast for a 1.5-percent increase in production this year, it cut its sales forecast to an increase of just 0.5 percent in the face of a sharper-than-expected drop in prices of 1.0 percent.
Industry-wide sales were now projected to reach just 187.7 billion euros ($253 billion) in the whole of 2013, whereas in July VCI had been pencilling in an increase of 1.5 percent to 190 billion euros.
In the third quarter, output increased by 1.5 percent year-on-year and stagnated compared with the preceding quarter, VCI calculated.
Total industry-wide sales amounted to 44.4 billion euros, which represented an increase of 1.0 percent on the year, but a drop of 1.0 percent from the second quarter.
"Momentum within the sector remains sluggish and the risk of a setback is high," the VCI warned.
The federation covers around 1,600 chemicals companies, including giants such as BASF and Bayer.
