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    Market Research

    Significant Recovery for European Paint, Coating Production in May 2020

    German production close to April level.

    Significant Recovery for European Paint, Coating Production in May 2020
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    CHEM Research GmbH07.24.20
    In May 2020, the paint and coating production showed different growth patterns in comparing Germany with the EU27 economic area. 
     
    The German production index rose to 81 points – a slight improvement. 

    In contrast, the EU27 index rose sharply to 87.9 points. However, for both indices, this means a decline of about -15% from the previous year’s level. 


     

    The German Paint and Coating production index changed only slightly. On the one hand, the demand for industrial coatings continued to decline due mainly to the significant contraction in industrial output. On the other hand, the German decorative paint market continues to be sustained by strong DIY demand. 
     
    In many European countries the lifting of the strict lockdown, including the opening of the DIY retail outlets, is prompting a revival of the market for decorative paints. This pattern takes after the German market development since the beginning of the year with only partial DIY retailing lockdown.
     
    From a European perspective, the recovery in the countries covered in this analysis is evolving in a similar way. 


     

    For June 2020 CHEM Research anticipates a further easing of the situation in Germany and the EU27 area. The following production index projection is provided for the 2nd quarter of 2020. 
     
    In Germany, the quarterly production index is projected to fall to 82.5 points in Q2 2020, down -13.7 % from the previous year’s 2nd quarter. 
    For the EU27 area, CHEM Research projects a quarterly index of 84.4 points for Q2 2020, which represents a year-on-year decline of -18.5 %. 

     

     
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