Chemical Industry Metric Suggests Gains for US Economy

The American Chemistry Council (ACC) reported Tuesday that one of its economic indicators suggests a growth trend for the broader U.S. economy for much of this year. “The CAB signals gains in U.S. commerce into the fourth quarter of 2020,” ACC Chief Economist Kevin Swift commented in a written statement, referencing the organization’s Chemical Activity Barometer (CAB). According to ACC, the CAB stems from a composite index of chemical industry activity and comprises four main components: production, equity prices, product prices and inventories as well as other indicators. ACC contends the early position of chemical industry activity in the supply chain has been found to consistently lead the U.S. economy’s business cycle. Moreover, it argues the CAB can help to determine turning points and likely trends in the broader economy.