German Chem Industry Cuts 2016 Sales OutlookAgain

German chemicals trade group VCI on Friday cut its forecast for industry revenue in 2016 for the third time, citing slower demand for plastics and chemicals used for making long-lasting plants and equipment.

 

VCI, which represents Germany's third-largest industrial sector, said it expected revenues to slip 1.5 percent in 2016, down from a previous forecast in May of 1.0 percent.

 

"Negative factors are mounting such as weak growth in emerging markets, less dynamic global trade and the end of the global investment boom," said VCI president Marijn Dekkers, the former chief executive of Bayer who is now chairman of Unilever (UNLYF).

 

The lobby group forecast output volumes to increase 0.5 percent this year, compared with the 1.0 percent seen previously. It reiterated that prices charged to customers in Germany would likely slip 2.0 percent this year. (Reuters Reporting by Ludwig Burger; Editing by Edward Taylor)