Germany's chemical sector activity continued to slow in September with a 1.3% month-on-month drop in output, extending the recent downswing into the sixth consecutive month, according to initial data by federal statistics agency Destatis Monday.
The official chemicals index fell to a nine-month low of 102.6 points, adjusted for seasonal and working-day variations. Against the prior year, output was 0.2% weaker, which compared with average annual growth of 3.6% over the January-September period.
Average capacity utilization rates eased over the third quarter to 84% from 86.4% as economic uncertainty and expectations of price declines prompted chemical users to run down stocks and delay purchases, chemical industry federation VCI said last week.
Among major domestic end users, lower output was recorded at factories making vehicles and components (-10.8%) as well as in the engineering (-4.4%) and construction (-0.8%) sector, according to Destatis.
Base chemicals output dropped 0.9% against August, including a 6.1% decrease of inorganic base chemicals and a 4.1% decline in organic base chemicals. The production of plastics in primary forms, by contrast, firmed 2.6% on-month.
