German chemical industry sentiment ticks up in January despite weak conditions, Ifo says

Feb 2 (Reuters) - Business confidence in Germany's chemical industry improved slightly in January as demand stabilised and order backlogs rose for the first time in several months, even as current conditions remained weak, an Ifo survey showed on Monday.

The Ifo index for the sector edged higher, reaching -23.5 points, up from seasonally adjusted -24.6 points in December, while expectations brightened, rising to -11.4 points from a seasonally adjusted -19.3 the prior month.

However, the current situation deteriorated, falling to -34.9 points, down from seasonally adjusted -29.7 points in December.

"The chemical industry is somewhat less pessimistic about the future, but current business remains weak," said ifo industry expert Anna Wolf.

Despite the positive signals, companies still plan to scale back production in the coming months and continue reducing staff, Ifo said.

"The ongoing price pressure and uncertainty in foreign trade due to the threat of tariffs are weighing on the chemical industry," said Wolf.