The Chemical Activity Barometer (CAB), an economic indicator created by the American Chemistry Council (ACC), rose 0.8% in June on a three-month moving average (3MMA) basis following a 1.3% gain in May. On a year-over-year (Y/Y) basis, the barometer rose 19.5% in June (3MMA).
The unadjusted data show a 0.1% decline in June, primarily due to weakness in equities, following a 1.3% gain in May. The diffusion index reached 85% in June. The diffusion index marks the number of positive contributors relative to the total number of indicators monitored. The CAB reading for May was revised upward by 0.73 points and that for April was revised upward by 0.35 points. The June data are provisional and subject to revision.
“In summary, the latest CAB reading is consistent with expansion of commerce, trade and industry,” says Kevin Swift, chief economist at ACC. “The year-over-year gains have likely peaked, suggesting a potentially slower pace of expansion.”
Swift presented these results in a recent Chemical Processing webinar. He also answered several questions from the audience on topics ranging from inflation and competition from China to the impacts of green initiatives on the chemical industry. You can view the webinar on-demand via this link: https://info.chemicalprocessing.com/webinars-2021-state-of-chem-mid-year-update_soc
