The sector fell to -28.3 points from -12.5 in May, reports Ifo with seasonally adjusted terms. Assessments of the current conditions fell to the lowest point since June 2020 at -31 points. 

Ifo industry expert Anna Wolf indicated that "High energy and production costs aren’t the only things putting a strain on business in the chemical industry. The order situation is continuing to worsen for many companies due to persistently weak global demand for chemical products."

One of the few positives from the report was the supply of intermediate products, as only 12.5% of companies reported bottlenecks. Upward price spiraling is also expected to come to an end, with most companies planning to lower prices.