LONDON—The latest survey of business confidence from the United Kingdom chemicals manufacturing industry shows a strong performance, but concerns for the future remain.
Off its second-quarter survey of member companies, the Chemical Industries Association reported an eighth successive quarter of growth for the sector but warned that this performance was not expected to continue into the third quarter.
About 50 chemical businesses, ranging from multi-nationals to SMEs located across the U.K. expected new orders, exports and domestic sales to fall in the third quarter of the year.
The negative business sentiment was linked to signs of an erosion in demand due to inflationary pressure on both households and businesses, according to the CIA release issued July 25.
"Despite the persistent rises in energy, raw material, transportation, and labor costs, as well as a myriad of logistical challenges—the industry continued to grow in the second quarter of 2022," commented Steve Elliott, chief executive of the CIA.