The Chemical Activity Barometer (CAB), a leading economic indicator created by the American Chemistry Council (ACC), has demonstrated consecutive growth over the past four months in its latest review.
Sequentially, it expanded 0.6% in April, 0.8% in May, 0.7% in June and 0.4% in July. Overall, and accounting for adjustments, the CAB remains 2.6% above this time last year – generally an improvement over prior months.
ACC’s Chief Economist Kevin Swift reflected on the upswing in results and stated, “The CAB is signaling higher US business activity into 2017 and that recent unpleasantness in the goods economy may be approaching its end.”
Production-related indicators were positive over this period, with trends in construction-related resins, pigments and related performance chemistry being mixed, and plastic resins used in packaging and other consumer and institutional applications largely on the up.
All data in the CAB is measured on a three-month moving average, and is derived from a composite index of chemical industry activity founded upon four primary components;
- Equity prices
- Product prices
- Inventories and other indicators