The American Chemistry Council (ACC) said that its Chemical Activity Barometer (CAB) showed improvement in August. The index rose 2.5% in August on a three-month moving average basis, extending 3.0% gain set in July. On a year-on-year basis, CAB fell 6.1% in August. Meanwhile, ACC’s unadjusted data showed a 1.8% increase this month, following 1.5% and 4.1% growth in July and June, 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 consists of four main components; production, equity prices, product prices, and inventories.
In August, indicators related to production were mixed. The pigments and related performance chemistry as well as construction-related resins segments recorded mostly strong positive trends. Positive trends were also reported in the plastic resins used in packaging and for consumer and institutional applications, resins and chemicals used in other durable goods segments. Indicators related to equity prices and product prices strengthened in July, while US exports were mixed. Inventory-related indicators were also positive.
