Business sentiment in Germany's plastics industry fell sharply in March as concerns over the Iran conflict, rising input costs and supply chain disruption weighed on outlooks.
According to HDH, the sector's economic indicator dropped to -14.8 points from -1.0 the previous month. While companies reported a slightly better view of current conditions, expectations for the next six months deteriorated significantly.
© Ronstik | Dreamstime
The assessment of present business conditions improved to -6.7 points from -9.3. However, forward expectations plunged to -22.5 points from +7.6, reflecting growing pessimism among manufacturers.
HDH said the worsening outlook is largely linked to the Iran war, which has pushed up energy and raw material prices while threatening stable supply chains. The association also cited geopolitical risks and unpredictable US tariff policy as additional sources of uncertainty.
Performance varied across industry segments. Manufacturers of technical plastic parts reported only mildly negative current conditions, while producers of packaging, construction materials, sheets and films were more downbeat.
Expectations for the months ahead remained stable only among plastic construction material manufacturers, while other plastics segments reported negative outlooks.
The results underline how geopolitical instability is increasingly affecting European manufacturing sectors reliant on petrochemical feedstocks and imported raw materials. Higher energy prices and disrupted logistics routes have become key concerns for plastics processors already facing weaker industrial demand.
Germany's plastics sector is closely tied to construction, automotive, packaging and consumer goods markets, meaning prolonged weakness could have wider knock-on effects across manufacturing supply chains.
Source: www.moebelfertigung.com
