The technical parts sector in Germany countered the processing industry’s general slowdown with a first-half sales increase of 3% to EUR 10.7 bn, according to German industry association TecPart (Frankfurt; www.tecpart.de), which was citing figures from the German federal statistical office Destatis (Wiesbaden; www.destatis.de).

TecPart said that between January and July, sales generated by Germany’s 3,000 or so plastics converters fell 4.6% to around EUR 38 bn. 

Construction, the sector with the strongest sales, experienced an almost 11% drop to EUR 10.7 bn, while packaging reported a 5.9% slump, and consumer goods turnover fell 1.7%, the group said. Despite the declines, employee numbers remained largely stable at around 323,000, noted TecPart MD Michael Weigelt.

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However, the outlook for the sector appears to be subdued, with an oversupply of plastics meeting weak demand, the association said. This is pushing down prices for not only polymers but also for products made from them. Plastics recyclers find themselves in a particular predicament, Weigelt explained, noting that they have to deal with high electricity costs, weaker input flows, and ruinous primary commodity prices.  

TecPart said it does not anticipate any improvement in the situation for the second half. A recession cannot be ruled out for the economy as a whole, the association warned, which was contrary to what was expected in the spring. “Frustration is running high”, Weigelt said. “People have the impression that a great deal of talking is going on in Berlin but no action is being taken.”