Production of several high-volume polymers in the U.S. were up in July, but a troubled housing market meant lower economic growth, the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com) says in its most recent economic assessment report.
In the latest installment of its Weekly Chemistry and Economic Trends, ACC reports that domestic production of polypropylene (PP) rose to 1.53 billion pounds in July, a year-to-year increase of 8.5%. Production of styrene-based latexes rose to 97 million pounds in July. The total is 11.6% above that of a year ago.
Domestic production of polyethylene products was generally higher last month. High-density polyethylene (HDPE) totals rose to 1.52 billion pounds in July, a slightly lower total than compared to a year ago. Low-density polyethylene (LDPE) production rose to 578 million pounds last month, 2.2% higher than this time in 2009. Also in July, production of linear low-density polyethylene (LLDPE) rose to 1.12 billion pounds, a total that is 6.1% lower than a year before. Polyvinyl chloride (PVC) production fell to 1.172 billion pounds in July, but the total is still 4.0% greater than compared to a year ago.
Meanwhile, ACC cites data from outside sources that suggest the housing market continues to be troubled. Existing home sales sank to their lowest level in 15 years while sales of new homes fell to a record low. “It is becoming clear that underlying demand for housing remains extremely weak,” ACC writes adding, “As confidence wanes and unemployment remains high, this will continue to be problematic for some time.”
In the global economy, year-to-year comparisons of industrial production continue to moderate in several countries, ACC says, suggesting that “the global recovery is weakening.”