The German chemicals and pharmaceuticals sector, one of the most important in Europe's top economy, said Wednesday it was satisfied with business in the first six months of this year.
"Sentiment is good in the sector," the head of the VCI industry federation Karl-Ludwig Kley told a news conference.
"Rising domestic demand is filling our order books. And business is also improving in our home EU market," Kley said.
Among the biggest chemicals groups in Germany are giants BASF and Bayer.
In the first six months, sector-wide sales rose by 2.0 percent to 98 billion euros ($133 billion) and overall output grew by 3.0 percent.
Looking ahead, Kley said "our member companies are confident that the trend will continue in the second half of the year."
Demand from the United States and eastern Europe would provide tailwind for the recovery, while few growth impulses were expected from Asia or South America, the federation said.
For the year as a whole, VCI said it is pencilling in a 2.0-percent increase in output. With prices projected to fall only slightly by 0.5 percent, sector-wide sales were forecast to rise by 1.5 percent to 193 billion euros.