Economic reports out this week point to further weakness in the economy, the American Chemistry Council (ACC; Arlington, Va.; www.americanchemistry.com) says in its latest Weekly Chemistry and Economic Trends report.
“Storm clouds are gathering,” writes ACC, pointing out that data on housing starts show that they have dropped to their lowest point since Fall 2009, and existing home sales are down for the second consecutive month. Although building permits, an indicator of future activity, rose modestly in June, they remain at “historically low levels,” ACC says.
“The housing sector faces an uphill battle while unemployment remains high and confidence in the recovery wanes,” the ACC report states.
Within the chemical industry, global output actually rose, ACC points out, but “moderating year-over-year gains suggest a softening global recovery.” In the U.S., chemical output slipped in all regions, and railcar loadings were up over lighter holiday traffic the week prior, but also “are moderating,” ACC says.
Citing data from the International Energy Agency, ACC says China has surpassed the U.S. as the world’s largest consumer of energy.
The ACC market capitalization of U.S. basic and specialty chemical companies rose slightly this week, closing at $516.4 billion on July 22, a level 0.5% higher than the previous week. Meanwhile, the S&P 500 Index fell by 0.3% over the same time period.