Global chemical production rose only 0.1% in April, continuing a trend of slowing growth in industrial activity over the previous several months, according to the American Chemistry Council’s (ACC; Washington, D.C.; www.americanchemistry.com) Global Chemical Production Regional Index (Global CPRI).
“Industrial production has softened in a number of nations early in the supply chain, and the global headline figure will likely moderate in light of a potential inventory-induced correction,” ACC says in its most recent Weekly Chemistry and Economic Report. “The slowdown in industrial activity has become more pronounced,” ACC adds, “the result of the supply-chain shock emanating from Japan.”
Gains in global chemical production have slowed on a year-over-year basis as well. In April, the Global CPRI was 5.4% higher than a year ago, compared to 5.5% higher in March, 5.7% in February and 5.9% in January. Global chemical capacity was stable in March, at 87.6%, according to recent data.
Projecting forward, ACC comments, “Most leading indicators of global industrial activity signal additional, but slowing, gains.”
In the wider economy, the U.S. economic reports released this week were mixed, ACC said, with first-quarter GDP gains unchanged, a disappointing result, “as expectations were for a modest revision upwards,” the ACC report says.
While profits continued to expand, they also experienced a slowdown, ACC points out.