Azithromycin Prices Plummet in US and German Market Amid Weak Consumers' Demand
Azithromycin Prices Plummet in US and German Market Amid Weak Consumers' Demand

Azithromycin Prices Plummet in US and German Market Amid Weak Consumers' Demand

  • 02-Nov-2023 3:55 PM
  • Journalist: Nicholas Seifield

In October 2023, Azithromycin prices in Germany and the USA showed a declining trend. One of the main factors is the market's ample supply of inventory combined with weaker demand from end-user sectors. Furthermore, the ongoing high-interest rates in Germany and the USA have a negative impact on customers' spending power and drive down the prices of Azithromycin.

Germany and the United States import Azithromycin APIs (Active Pharmaceutical Ingredients) from China. The prices of Azithromycin have plummeted in China as well, influencing the US and German markets similarly. According to a recent official factory survey, China's manufacturing sector unexpectedly dropped in October. This event puts doubt on the favorable signs that had previously pointed to a healthy recovery in the world's second-largest economy. The drop in industrial production reflects seasonal factors due to an eight-day holiday at the start of October, but it also illustrates that market demand remains weak. The manufacturing and non-manufacturing PMIs' new orders indices were both below the 50-point line, indicating a dip in demand and adding to Azithromycin's decreasing trend.

The eurozone's economy shrank by 0.1 percent this summer, and inflation plummeted to a two-year low in October, indicating that high-interest rates were taking their toll. According to the most recent flash estimate, October headline inflation was 3.8% yearly, down from 4.5% in September. Germany's harmonized European inflation rate fell to 3.0% year over year from 4.3% in September. The primary reason was a double-digit decline in fuel costs, which fell by 11.1%. The better-than-expected inflation data is bringing the European Central Bank closer to its 2% objective due to the quick rise of interest rates. Typically, higher central bank rates are the conventional antidote to excessive inflation. They impact borrowing rates across the economy, which decreases demand for products and restrains price rises, explaining the decline in Azithromycin prices in Germany.

Consumer confidence in the United States fell for the third consecutive month in October, owing to continued concerns about inflation, increasing borrowing costs, and the political environment, which altered the market dynamics for Azithromycin. The Conference Board's consumer confidence index decreased to 102.6 in October, down from 104.3 in September. The US central bank has held its key interest rate at its current 22-year high as it seeks to stabilize price rises, which had recently reached near-record levels. The Federal Reserve's rate target stays fixed at 5.25%–5.5%, which continues restraining consumer spending and keeping Azithromycin costs low.

The ChemAnalyst indicates that the costs of Azithromycin are expected to continue to drop in the coming months due to the market's abundant supply and steadily declining demand from the pharmaceutical and end-user healthcare sectors. However, Azithromycin prices can rise again at the beginning of FY24, given the slowing of inflation and the drop in borrowing rates. This might lead to a recovery in consumer confidence and an expansion of the Azithromycin market.

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