Wholesale sales of chemical rose by 2.3% in June, following a 0.9% decline in May, the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com) says in its most recent Weekly Chemical and Economic Trends report. Compared to a year ago, wholesale chemical inventories were up 18.5% and sales were up 13.5%, while the inventories-to-sales ratio remained steady, the ACC report says.
Meanwhile, fears of another global recession are rising. Several noted economic forecasters raised the chances of another global recession to one-in-two, ACC said. Eurozone output contracted at its sharpest rate in six months as the economy overseas struggles with its own debt problems, they add.
Overall, wholesale trade rose by 0.6% in June, following a 0.3% drop in May. The gain in the wider wholesale sector was led by “sharply higher sales of automobiles and parts, as supply chains were restored following the Japanese earthquake,” ACC says. Compared to a year ago, wholesale inventories were up 15.8% and sales were up 15.4%, the ACC report notes.
Summarizing the recent situation, ACC said the mixed economic data offered some positive news despite the recent turmoil in equity markets. For example, retail sales grew in July, and June’s small gain was revised upward. The ACC report also cites data indicating that consumer debt expanded at its fastest rate in almost four years. It is unclear, however, whether that means consumers are comfortable enough to take on more debt, or whether struggling to finance current consumption out of income.
Other data mentioned in the report seems to suggest that pessimism may be rising among small businesses.