Despite ongoing supply chain constraints, the U.S. chemical industry expects to deliver solid growth this year as it benefits from inventory rebuilding, steady demand across many end-use industries and a continued competitive advantage in natural gas-based chemistries, according to the American Chemistry Council’s (ACC) Mid-Year 2022 Chemical Industry Situation and Outlook.
“Following several years of weak growth related to trade tensions, COVID-19 and disruptive weather events, chemical output is looking to have its best year in more than a decade in 2022, with expansion across all chemistries,” says Martha Moore, ACC chief economist and managing director and author of the Outlook, in a release from the organization. “Investment in sustainability solutions – from innovative lower-emissions technologies to advanced recycling and recovery – will increasingly be a key driver of chemical industry capital spending.”
ACC’s Outlook begins with a review of the global economy, which continues to struggle with supply chain problems and inflation, exacerbated by the Russian invasion of Ukraine and COVID-related lockdowns in China. While these challenges are likely to persist, slower growth in consumer spending and shifting consumption patterns away from goods should help relieve some pressure. Global GDP will grow 3.2% in 2022 and 3.2% in 2023, while industrial production will grow 3.9% in 2022 and gain 3.6% in 2023, ACC projects.
In the United States, several economic growth drivers remain in place, including strong employment, healthy household and corporate balance sheets and solid manufacturing growth. Despite a contraction in the first quarter, GDP is expected to grow by 2.8% in 2022 and 2.1% in 2023 after a 5.7% gain last year. Business investment will grow 5.7% in 2022 and 3.5% in 2023 after gaining 7.4% in 2021. The unemployment rate will average 3.6% in 2022 and 3.7% in 2023 after a 5.3% reading last year.
Read the entire press release at www.americanchemistry.com
[Editor's Note: Chemical Processing is hosting a free webinar June 23, 2022 -- State of the Chemical Industry Mid-Year Update. Martha Moore will be the presenter. You can learn more or register here. ]
