German packaging industry: business climate index rose slightly

The German portal www.neue-verpackung.de, published a survey of business climate index compiled by Ifo Institute in various sectors of the packaging industry in January 2020. Overall, moods in the industry improved slightly. This was due to improved business prospects. On the contrary, the enterprises corrected their current position in the direction of deterioration.

In the segment of paper and paperboard products, the business climate has improved markedly. The reason for this was less pessimistic expectations for the coming months. The current situation was not so well evaluated by enterprises. This was probably due to insufficient demand. Warehouses were again full. Production is expected to increase over the next few months. The corresponding sales volume is likely to be achieved domestically, as export prospects remain somewhat pessimistic. The number of employees in the segment will decrease. Capacity utilization rose to 86.0%. However, it is still below the long-term average of 87.3%.

In the segment of plastic products, the business climate again worsened a bit after a recent positive development. Companies revised their estimates of both the current situation and expectations for the coming months downward. The reason for this is a decrease in demand. Accordingly, stocks increased markedly, despite the fact that production was declining. Only a few companies expect an increase in production in the coming months. Capacity utilization declined to 72.8%, which is below its long-term average of 80.2%. Despite difficult demand, export expectations for the first time in almost a year have become positive. Although prices have fallen slightly lately, companies are increasingly reporting that they would like to raise prices again.

The business climate indicator has grown significantly in the glass packaging sector. The current situation, on the other hand, was rated slightly worse. However, the indicator of the situation remains well above its long-term average. Capacity utilization increased markedly, reaching 89.2%, which is about two percentage points above the average.

In the segment of wooden packaging, the business climate deteriorated somewhat. Although companies have significantly revised their assessments of the current situation upward, they are much more skeptical about future prospects. At the same time, production decreased, but capacity utilization increased to 83.1%, which is significantly higher than the average of 79.0%.

In the metal packaging segment, the business climate has worsened. Although the companies were satisfied with the current situation in the business, they are more pessimistic about the prospects for the coming months. Demand stagnated, the volume of orders did not change. Production increased slightly. An increase in production is also partially expected in the coming months. The overseas market remains challenging for companies. It is expected that the volume of orders will decrease.

Source: https://article.unipack.ru/