After seeing weakness in the second quarter of this year, business of the German chemical industry picked up some momentum in the third quarter, with production up 0.5% and sales up by the same margin to €44.9 billion, the industry association Verband der Chemischen Industrie (VCI) said in its quarterly report. Capacity utilization rates fell slightly to just under 84%.

Over the first nine months of 2014, production and sales increased minimally, thanks mostly to foreign business, which "developed positively in almost all regions."

VCI said domestic trading deteriorated slight in the January-September period on the back of a temporary fall in German industrial output reflecting seasonal plant closings at smaller manufacturing companies in Q3.

Association president Marijn Dekkers, who is also CEO of Bayer, said growth rates in the German chemical industry "remain moderate." For the full year, producers expect only a slight rise in domestic demand, while the outlook for foreign business is better.

The association is upholding its forecast of 1.5% growth in chemical output in 2014. Reflecting weak pricing, German chemical sales are expected to rise by 1% to €192.5 Billion.