The bulk of the week’s economic data from around the world confirm a slowdown in industrial activity that has been a trend for the past several months, the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com) states in its latest Weekly Chemistry and Economic Trends report. “A number of nations are even showing year-over-year declines,” the ACC says.
In the U.S., the consensus seems to be that the economy is in “a soft patch,” ACC says, “with most indicators suggesting continued recovery but at an anemic, uneven pace.” There is significant concern that the soft patch could “devolve into an outright downturn,” ACC comments. Persistent high energy prices, debt and uncertainty are playing key roles.
There was, however, some positive information coming out in the few economic reports this week, ACC points out. Wholesale trade continued to improve, as did consumer debt.
The ACC report also cited data from the U.S. Federal Reserve’s “Beige Book” – a set of anecdotal information from the regional Fed offices. According to the manufacturing data, activity seemed to increase since the last Beige Book report in all but two districts, but “many noted the pace of growth had slowed,” ACC says.
Information gathered for the Beige Book indicates that the recent earthquake in Japan had a more profound effect on the supply chain that previously thought, the ACC report says.
In chemical-related data from the Beige Book, the Philadelphia District noted that some of the strongest orders came from producers of chemicals, while the Atlanta District railway firms cited “strong increases in exports of chemicals to India and China,” ACC report says.