Fashion
Germany’s ifo index drops to 86.4 in March as uncertainty weighs on
The uncertainty has increased noticeably, with the ongoing conflict involving Iran weighing heavily on corporate confidence. The escalation has effectively stalled hopes of a near-term economic recovery, particularly as energy markets remain volatile, ifo said in a press release.
In the manufacturing sector, sentiment declined after showing improvement in recent months. The drop was driven largely by a significant deterioration in expectations, while firms also reported a less favourable view of their current business situation. Energy-intensive industries were particularly affected, underscoring the pressure from elevated input costs.
Germany’s business sentiment weakened in March, with the ifo business climate index falling to 86.4 from 88.4 amid rising uncertainty and the Iran conflict dampening recovery hopes.
Manufacturing saw a sharp drop in expectations, especially in energy-intensive sectors.
Trade sentiment also declined due to inflation concerns, although current conditions remained relatively stable across sectors.
The trade sector also registered a decline in sentiment, primarily due to a more pessimistic outlook. Concerns over rising inflation among German consumers have led to weaker expectations in both wholesale and retail segments, signalling subdued demand conditions ahead.
Despite the gloomier outlook, businesses in the trade sector reported a slightly improved assessment of their current situation. This suggests that while present activity remains relatively stable, confidence in future performance is deteriorating.
Fibre2Fashion News Desk (SG)
The scheme will contribute to the objectives of the Clean Industrial Deal to accelerate the decarbonisation of EU industry, the REPowerEU Plan to reduce dependence on Russian fossil fuels, as well as the EU Hydrogen Strategy, an official release said.
The European Commission has cleared a $1.5-billion German state aid scheme to produce renewable hydrogen through the European Hydrogen Bank’s ‘Auctions-as-a-Service’ tool for the auction that closed in 2026.
The scheme will contribute to the objectives of the Clean Industrial Deal, the REPowerEU Plan to reduce dependence on Russian fossil fuels, as well as the EU Hydrogen Strategy.
The approved scheme will support construction of up to 1,000 MW of installed electrolyser capacity, and the production of up to 10 million tonnes of renewable hydrogen. This is estimated to avoid up to 55 million tonnes of carbon dioxide.
The aid will be awarded through a competitive bidding process that will be supervised by the European Climate, Infrastructure, and Environment Executive Agency (CINEA).
The scheme will provide support to companies planning to construct new electrolysers feeding renewable hydrogen into the Danish Hydrogen Backbone 1 pipeline, which is a project of common interest, and deliver it to buyers connected to the German Hydrogen Core Network.
The aid will not only support the production of renewable hydrogen, but also cross-border infrastructure that connects renewable hydrogen sources in the North Sea to large-scale buyers.
Under the scheme, the aid will take the form of a direct grant per kilogram of renewable hydrogen produced. The aid will be granted for a maximum duration of ten years. Beneficiaries will have to prove compliance with EU criteria for the production of renewable fuels of non-biological origin (RFNBOs).
The European Hydrogen Bank is an initiative to facilitate EU production and imports of renewable hydrogen in and to Europe. Its objective is to close the investment gap and connect the future renewable hydrogen supply to consumers to meet the intended target of 20 million tonnes by 2030, contributing to the REPowerEU objectives and the transition to climate neutrality.
Run by the Innovation Fund, the hydrogen auctions implement the EU-domestic leg of the European Hydrogen Bank and are financed through the EU Emissions Trading System revenues.
Fibre2Fashion News Desk (DS)
The US–Iran military conflict has sent shockwaves through global energy and chemical markets. Crude surged past $*** per barrel in late March and April ****, its highest level in years. Prices briefly touched $*** per barrel in late April before stabilising near $*** per barrel, following several news-driven fluctuations. Year-on-year, this represents a surge of over +** per cent vs. **** highs and remains +** per cent above compared to last year’s equivalent period.
Key petrochemical feedstocks that directly feed the textile chain — Naphtha, Paraxylene (PX), Purified Terephthalic Acid (PTA), Mono Ethylene Glycol (MEG), Ethylene, and Ethylene Oxide are all under severe cost pressure. Further escalation above $***–***/barrel would trigger a new wave of downstream price hikes across yarn, fabric, and finishing chemicals.
The US-Iran war has intensified cost pressures, with higher fuel and product prices sharply weakening consumer sentiment.
Lower- and middle-income households are bearing the steepest burden as gas takes a larger share of discretionary spending.
Higher-income consumers remain more resilient, keeping aggregate demand firm despite widening spending divergence.
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