Despite challenges like weak demand in the agricultural and energy markets and a sluggish Chinese economy, the broader chemical industry is on the road to recovery, according to an article from Zacks Research. The shale gas revolution in the U.S. is cited among the reasons for optimism as chemical makers ratchet up investment on plants and equipment.
Other signs of a rebound, according to Zacks, include healthy momentum across the automotive and construction markets and an active focus by chemical manufacturers on mergers and acquisitions to diversify and shore up growth. A shift in focus to high-growth markets, cost-cutting measures, productivity improvements and other strategic moves by chemical companies are other factors supporting the bullish case for chemical stocks, according to Zacks.
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