The Chemical Activity Barometer (CAB), an economic indicator created by the American Chemistry Council (ACC), fell 0.5% in August on a three-month moving average (3MMA) basis following steadily easing gains in May, June and July. On a year-over-year (Y/Y) basis, the barometer rose 12.5% in August (3MMA).
The unadjusted data shows a 1.6% decline in August after flat readings in July and June. The diffusion index eased to 82% in August. The diffusion index marks the number of positive contributors relative to the total number of indicators monitored. The CAB reading for July was revised downward by 0.53 points and the reading for June was revised downward by 0.33 points. The August data is provisional and subject to revision.
“The latest CAB reading is consistent with expansion of commerce, trade and industry, but clearly growth has peaked, with slower growth ahead.” says Kevin Swift, chief economist at ACC.
In August, production-related indicators were up slightly. Trends in construction-related resins and related performance chemistry improved. Resins and chemistry used in other durable goods increased. Plastic resins used in packaging and for consumer and institutional applications showed gains. Performance chemistry for industry was solid and exports grew. Equity prices declined amid geopolitical uncertainty and fears about the Delta variant. Product and input prices expanded. Inventory and other supply chain indicators were positive.
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