Chemical activity pointing to gains in US business activity in early 2016

The Chemical Activity Barometer is a leading economic indicator derived from a composite index of chemical industry activity. The chemical industry has been found to consistently lead the U.S. economy’s business cycle given its early position in the supply chain, and this barometer can be used to determine turning points and likely trends in the wider economy. ACC Chief Economist Kevin Swift says “A number of trends remain evident as we head into the second-half of the year.” “There was upward momentum in plastic resins used in light vehicles, which are on track for a very good sales year, but we also continue to see declines in oilfield chemicals and U.S. exports overall, largely as a result of softer oil prices and a strong U.S. dollar,” Swift said. “Despite these modest headwinds, the Chemical Activity Barometer is still signaling slow, albeit potentially accelerating, gains in business activity into the early part of 2016.” (VIEW LINK)