The American Chemistry Council (ACC)’s Chemical Activity Barometer (CAB) in July showed an increase in line with the recovering US economy.
The expansion was 2.7% in July on a three-month moving average (3MMA) basis while on a year-on-year basis, the barometer slumped by 8.9%. Last month, the reading was only gaining 0.1%.
On an unadjusted basis, the gain this month was 1.3%, after rising by 3.4% last month and 3.6% in May. The diffusion index climbed to 41%.
This month, indicators related to production were mixed. Albeit the developments in new home sales, housing starts, and building permits, soft trends were seen in the construction-related resins, pigments, and related performance chemistry.
Likewise, the resins and chemicals used in durable goods were mixed, showing the recovery in light vehicles and other industries. Another mixed reading was seen in plastic resins used in packaging and for consumer and institutional applications.
On the other hand, performance chemistry strengthened, while US exports were mixed. Equity prices strengthened, and product and input prices enhanced. Inventory and other supply chain indicators turned positive.
