FRANKFURT, Sept 5 (Reuters) - German chemicals trade group VCI said it still expected the nation’s chemicals businesses to see revenues increase by 10 percent in 2011 but warned that risks to growth were mounting.
“Even though signs are increasing that the global economy is cooling, 2011 will be a good year for the German chemicals industry,” said VCI chairman Klaus Engel.
“Growth will be clearly weaker in the second half, which we have been anticipating for quite a while now,” he added.
The group also reiterated its previous outlook for industry output volume to rise 5 percent this year.
Worries have been mounting around the chemicals sector in recent months as sharper-than-expected rises in commodity costs have tested companies’ ability to raise prices to protect margins, particularly in mature markets facing softening demand.
VCI, which represents Germany’s third-largest industrial sector, said second-quarter industry revenues rose 8.1 percent year-on-year on 5.7 percent higher output. (Reporting by Ludwig Burger)