What were the key drivers and limitations of Germany's chemical industry output growth in Q2 2024, according to VCI?

According to VCI, Germany's chemical industry output rose 0.6% year-on-year and 3% sequentially in Q2 2024, driven by a slight economic recovery and stockpiling linked to the Middle East conflict; however, VCI stressed this upturn was temporary and not sustainable, citing persistent challenges including rising raw material and energy costs, capacity utilization at only 73.2% (well below the long-term average of 83%), and a renewed decline in orders and revenue starting in June.

How does VCI assess the sustainability of the Q2 sales increase and its outlook for the full year?

VCI noted that sales of chemicals and pharmaceuticals rose 7.6% year-on-year to €54.5 billion in Q2 — the first sales increase in over three years — fueled by higher prices and modest volume gains, but emphasized this was misleading and not indicative of structural recovery; it maintains its forecast of a 1.5% decline in chemical and pharmaceutical production for the full year, citing continued weak capacity utilization, high cost pressures, and a subdued industrial economy, while projecting only a 2.5% sales rise in 2026, supported mainly by elevated producer prices.

Germany’s Q2 output increased on temporary uplift amid Middle East war: VCI

Sep 3, 2026

VCI reported Germany's Q2 chemical production rose 0.6% YoY due to stockpiling and price hikes linked to the Middle East conflict, yet capacity utilization remains low and annual forecasts stay negative.

chemweek

Germany’s Q2 output increased on temporary uplift amid Middle East war: VCI

chemweek

2026-09-03

Germany’s Q2 output increased on temporary uplift amid Middle East war: VCI

Germany’s Q2 output increased on temporary uplift amid Middle East war: VCI

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