Composite leading indicators (CLIs) in March for industrial production continue to point to global recovery, according to the latest American Chemistry Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com) Weekly Chemistry and Economic Trends report, which cites data from the Organization for Economic Cooperation and Development (OECD).
The March CLIs, the most recent data available, are pointing to some divergence in the pace of expansion, compared to data from the month prior. This month’s CLIs suggest a slower expansion in most European Union countries and continued expansion in North America, China and Russia. “CLIs for Canada and China signal regained momentum in economic acivity, and CLIs for the U.S., Germany and Russia continue pointing to expansion,” the ACC report explains. The OECD CLI is designed to provide early signals of turning points (peaks and troughs) between expansions and slowdowns of economic activity, the ACC points out. Since the OECD CLIs are centered on industrial production, they are good predictors of economic conditions for basic and specialty chemicals.
The ACC report says that in the U.S., the Census Bureau reported that overall wholesale trade increased by 2.9% in March, and wholesale chemical sales rose 6.3% to $9.4 billion. The jump follows a 0.4% increase for the prior month. Wholesale chemical inventories also rose, by 2.7%.
ACC analysis of this weeks mixed economic reports said that the effect of higher gasoline prices was “evident in many of the indicators.” Prices continued to accelerate across the supply chain, led by the higher prices for petroleum and other commodity products. “These inflationary pressures now appear to be bubbling up at the consumer level, and year-over-year gains in consumer prices have been intensifying,” the ACC report says.