Chemical Activity Barometer Expands Again For Fifth Straight Gain

Feb. 21, 2018
The ACC’s Chemical Activity Barometer expand 0.5% in February on a three-month moving average basis, its fifth such solid gain following the 2017 hurricanes.

The Chemical Activity Barometer (CAB), an economic indicator created by the American Chemistry Council (ACC), expands 0.5% in February on a three-month moving average (3MMA) basis, its fifth such solid gain following the 2017 hurricanes. On an unadjusted basis, growth was just 0.1%. The CAB is up 4.2% on a 3MMA compared to a year earlier.

"All eyes have been on inflation, starting with a strong gain in January wages reported two weeks and continuing into last week with a larger than expected gain in consumer-level inflation," says Kevin Swift, chief economist at ACC. "Equity markets have suffered, but with some good reports recently on the real economy, along with people calming down, equity markets now seem to be on the mend."

The Chemical Activity Barometer has four primary components, each consisting of a variety of indicators: 1) production; 2) equity prices; 3) product prices; and 4) inventories and other indicators.

February production-related indicators show continued improvement, including gains in construction-related resins and pigments; plastic resins used for consumer packaging; performance chemistries; and U.S. exports. While equity prices recede, inventory and other indicators are very positive. Overall, the diffusion index contracts to 53%. This index marks the number of positive contributors relative to the total number of indicators monitored.

For more information, visit: www.americanchemistry.com

Sponsored Recommendations

Keys to Improving Safety in Chemical Processes (PDF)

Many facilities handle dangerous processes and products on a daily basis. Keeping everything under control demands well-trained people working with the best equipment.

Get Hands-On Training in Emerson's Interactive Plant Environment

Enhance the training experience and increase retention by training hands-on in Emerson's Interactive Plant Environment. Build skills here so you have them where and when it matters...

Rosemount™ 625IR Fixed Gas Detector (Video)

See how Rosemount™ 625IR Fixed Gas Detector helps keep workers safe with ultra-fast response times to detect hydrocarbon gases before they can create dangerous situations.

Micro Motion 4700 Coriolis Configurable Inputs and Outputs Transmitter

The Micro Motion 4700 Coriolis Transmitter offers a compact C1D1 (Zone 1) housing. Bluetooth and Smart Meter Verification are available.