Chemical stock downgrades, lower activity point to more softness in industry

| July 23, 2019

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Chemical sector activity flattened in July as economists warned that the U.S. chemical sector's expansion is reaching into its late stages and analysts downgraded views of two top Houston chemical companies.
The Chemical Activity Barometer, a leading economic indicator created by the trade group American Chemistry Council (ACC), eased slightly in July as performance activity in construction-related resins (plastic pellets), pigments and related performance chemistry were mixed, offsetting positive trends in plastics used for packaging and other consumer goods. The index was also pulled down by lackluster export results. Economists from the American Chemistry Council look at a host of key indicators in the chemical industry to develop the index, called the Chemical Activity Barometer. The index is a composite of several factors including chemical company stock data; hours worked in chemical sector; product pricing; end-user sales inventories; building permits; purchasing orders and equity pricing among other variables.

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