The German chemicals and pharmaceutical sector has cut its forecasts for 2019, predicting a decline of 3 per cent in turnover to 179 billion euros (202 billion dollars), according to figures released by the VCI association in Frankfurt on Wednesday.
"Risks to economic growth remain high," VCI President Hans Van Bylen said, referring to the trade conflict between the United States and China, Brexit and the dispute with Iran over its nuclear programme.
The VCI had previously predicted a decline in turnover of 2.5 per cent, but has downgraded the forecast after a weak first half.
Production in the third-largest segment of German industry is set to decline by 4 per cent this year. This forecast has also been downgraded by the VCI.
"The global economy is growing more slowly than expected at the start of the year," Van Bylen said.
The VCI is pinning its hopes on the German automotive sector, currently suffering the knock-on effects of the diesel emissions crisis.
The food and electrical sectors could also provide support, Van Bylen said.
As a key provider to other sectors, the chemicals sector experiences downturns in the wider economy early in the cycle, and is thus seen as a lead indicator.
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