European chemicals output will grow by 2% in 2014, according to European Chemical Industry Council; production growth expected to continue in 2015, though pace is likely to slow to 1.5% as restocking tails off
, July 9, 2014 (Chemical Business Newsbase (Press Release Abstracts)) – European chemicals output will grow by 2.0% in 2014, driven by rising demand from customer industries, particularly car-makers, and some stabilization in the construction industry, according to Cefic, the European Chemical Industry Council. Production growth is expected to continue in 2015, though the pace is likely to slow to 1.5% as restocking tails off. The return to growth follows a modest fall in output during 2013 as the industry wrestled with the second slowdown of Europe's double-dip recession. After a slump by more than 20%, Europe's production of chemicals has yet to match the peak achieved in 2008. In its bi-annual industry forecast, Cefic said that chemical industry output contracted by 0.2% in 2013, slightly less than the 0.5% expected. The outlook for 2014 has also improved: growth in 2014 is now expected to reach 2.0%, excluding pharmaceuticals. Looking at the wider economy, European confidence indicators are positive, and purchasing managers' expectations suggest that Europe's industrial recovery is broadening out.