Better, but not exactly rosy

Germany’s Industrievereinigung Kunststoffverpackungen (IK) trade association reports in its Economic Trend for the first quarter of 2012 that companies in the plastics packagings sector have more positive expectations than was the case this time last year. “Almost all companies judge the current economic situation to be good or at least satisfactory,” the IK says. However, the “turnover prognosis regarding their own companies” is more cautious. “While 66 per cent of people asked expect a continuous turnover development in the first quarter of 2012, around 20 per cent assume that turnovers will decrease. In the field of exports, a third of IK members expect further downturns. In this respect, companies [are relying] on solid domestic economic activity,” it states.

It terms of raw material prices, nearly 40 per cent of IK members polled said they anticipate further increases this year. Should this come to pass then the sector will once more see its profit margins squeezed, a situation that the IK says the market should respond to “as quickly as possible”.

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