According to the American Chemistry Council (ACC), the Chemical Activity Barometer (CAB) improved in September. The index gained 1.6% this month, on a three-month moving average basis, after increasing by 2.7% in August. On a year-on-year basis, CAB fell 4.3% this month. Meanwhile, ACC’s unadjusted data showed a 0.7% increase this month, following 1.9% and 2.2% growth in July and August, respectively.
ACC had applied the CAB since 1912 as an economic indicator in the US chemical industry, which can be used to analyze trends in the broader economy. It comprises four primary components; production, inventories, equity prices, and product prices.
In September, indicators related to production were mixed. The pigments and related performance chemistry as well as construction-related resins segments, recorded mostly positive trends. Positive trends were also reported in the plastic resins used for consumer and institutional applications and in packaging. Indicators related to equity prices were flat, while indicators related to product and input were also steady. US exports were mixed, while inventory-related indicators were positive.
