The US economy continues to grow, albeit slowly, according to a recent report by the American Chemistry Council (ACC).
The organization’s economic indicator, shown to lead American business cycles by an average of eight months at cycle peaks, increased by 0.3 percent over May on a three-month moving average (3MMA) basis.
The barometer is up 3.5 percent over a year ago. Heightened production of plastic resins used in consumer and institutional applications continues to expand, suggesting further economic gains driven by the consumer.
Dr. Kevin Swift, Chief Economist at the American Chemistry Council, supported the report, saying, “Virtually all production-related indicators strengthened” in June.
“Most notable is the healthy-paced production of plastic resins used in consumer and institutional applications, suggesting the consumer-led economic expansion is still in place,” Swift says.
Although conditions in Japan are improving and Europe’s recession appears to be bottoming out, growth in China has slowed and prospects in other Asian markets remain weak, producing a plateau in U.S. export volumes, he adds.
The ACC’s economic indicator is known as the Chemical Activity Barometer (CAB), and is used to show results on a monthly basis. The CAB provides a long lead for business cycle peaks and troughs, and can help identify emerging trends in the wider U.S. economy within sectors closely linked to the business of chemistry such as housing, retail, and automobiles.
The business of chemistry is a $770 billion enterprise, officials say, and remains one of America’s most significant manufacturing industries, with more than 96 percent of all manufactured goods touched by products of chemistry.
About the American Chemistry Council
The American Chemistry Council (ACC) represents the leading companies engaged in the business of chemistry. Its members, according to the organization, apply the science of chemistry to make innovative products and services that make people’s lives better, healthier, and safer. It is also committed to improved environmental, health, and safety performance through Responsible Care, common sense advocacy designed to address major public policy issues, and health and environmental research and product testing.