One expert believes the chemical industry is signaling a recessionary warning, calling the sector, “the litmus test for the global economy,” according to an article from Yahoo Finance. Paul Hodges, founder of New Normal Consulting and author of “Boom, Gloom and the New Normal,” points to the decline in petrochemical prices from their 2021 peak as indicative of a demand destruction and slowdowns in major industries like automobiles, electronics and housing.
According to Yahoo Finance, Hodges believes Europe is in the thick of a slowdown and an energy shock, and China is slowing amid recent lockdowns. While analysts are calling for a possible recession in 2023 or 2024, Hodges reportedly believes that the chemical industry, as a leading indicator, is signaling something different.
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