The American Chemistry Council (ACC) said that the Chemical Activity Barometer (CAB) dropped in May with production-related indicators slumped.
On a three-month moving average (3MMA) basis, the CAB went down by 5.4%. Year-on-year, the barometer slumped by 12.4%. The unadjusted data showed a 0.3% decline after falling by 6.3% in April.
ACC chief economist Kevin Swift opined that the decline maybe has bottomed out as the CAB reading is consistent with the recession but the unadjusted decline was only 0.3%.
In May, production-related indicators declined. Negative trends were spotted in performance chemistry, construction-related resins, pigments and related performance chemistry, along with resins used in appliances, light vehicles, machinery, and other durable goods.
Plastic resins used in packaging and for consumer and institutional applications were mixed.
The US posted weak exports. Equity prices are getting better, while product and input prices are firming. Inventory and other supply chain indicators were negative.
