Berlin - Germany's key chemical industry said Thursday it was bracing itself for a slump in sales next year as global demand contracts in the wake of the world economic downturn.

The German Chemical Industry Association (VCI) said it expects 2009 sales to drop by 1.5 per cent in 2009 after rising by about 3 per cent this year.

"The mood in the German chemical industry has become less optimistic," the VCI said.

Moreover, the VCI warned that falling demand from industry and weaker private consumption meant that it did not see a rapid recovery emerging for what it one of Germany's key export sectors.

"Most companies see future developments in a pessimistic light, thinking that the business situation will further weaken in the coming months," the VCI said. (dpa)