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Figures released by the Chemical Industries Association indicate sustained growth for Q2 2024, building on the positive performance seen in the first three months of the year. This marks a significant recovery following 18 months of severe decline.

Challenges remain for the sector including the cost of energy and the price of raw materials, both of which are up to four times more expensive than competitor countries.

Steve Elliott, the Association’s Chief Executive, commented: “the fact we now have roughly half of our companies reporting higher sales, exports and production levels is good news. Capacity utilisation is increasing for 40% of respondents to our latest business survey. Optimism for the next three months and for the year ahead is also strengthening with sales expected to continue increasing by 60% of respondents. The Government’s commitment to a new industrial strategy is very welcome news and urgent progress is needed here to sustain this growth and give businesses the confidence to invest for the longer term”.​

He added “Geo-political tensions also continue to affect our sector. We want to work with Government and other stakeholders to find a way of growth continuing despite these events and ensuring strong supply chains”.

Economist Michela Borra added “Official Government figures show that chemical input prices are 7.3% higher than output prices. This continues to put a strain on margins which are in a tough place after 18 months of contracting sales for the sector”.