Production of paints in Europe in August slightly above previous year
According to the market research institute Chem Research, in August 2020, the production volume of paint materials in Europe is slightly above the previous year’s level for the first time since the beginning of the Corona crisis.
German industrial production for this product group is recovering at a comparatively slower pace and in August was still – 6.5 % below the previous year. In the economic area of the EU 27 the index rises to 102.2 points. This represents an increase of + 3.3 % on the previous month and growth of + 0.5 % on the previous year. In Germany the production index rises to 87.2 points and recovers only slightly as in the previous months. This represents an increase of + 2.9 % on the previous month and a decline of – 6.5 % on the previous year. Considering the fact that German industry has a share of approx. 25 % in the EU 27 indicator, growth of almost + 2.8 % can be expected in the EU 26 area, i.e. the economic area without Germany.
Forecast for the fourth quarter
A comparison of the development of production in both economic areas shows the significantly stronger decline in production in the EU 26 states in the months of March and April, but already in May both regions are at the same level of decline. Since the month of June, the EU 26 region has consistently outperformed Germany. Further, detailed information is available in the “Chem Research Market Report Plus”, which analyses the current production and domestic demand for coatings and inks in Germany in the third quarter of 2020. The almost 20-page report will also contain a forecast for the fourth quarter and thus provide an estimate of market development for the whole of 2020.
