In April, the US Chemical Activity Barometer (CAB) shrinks by 5.5% on a three-month moving average (3MMA) basis, following the 2.9% fall in March. Year-on-year, the CAB dropped by 7.3%.
According to the American Chemistry Council (ACC), the unadjusted data shows a 6.7% decline this month following an 8.9% decline in March and a 1.0% decline in February. The diffusion index slumped from 47 percent to 35 percent in the month.
Kevin Swift, chief economist at ACC commented that the latest CAB reading is in line with a recession. “The declines of April and March are the most pronounced, pervasive and persistent in the post-World War II period,” he said.
This month, the production-related indicators generally decreased with the trends in construction-related resins, pigments, and related performance chemistry were generally negative.
Plastic resins utilized in packaging and consumer and institutional applications were mixed. Performance chemistry was negative and the country’s exports were weak but equity prices are improving. Product and input prices were both negative. Inventory and other supply chain indicators were negative.
