Positives outweigh negatives for US economy – ACC

04 December 2007 00:39  [Source: ICIS news]

NEW YORK (ICIS news)--Positive factors driving the US economy outweigh the negatives, but just barely, said the American Chemistry Council’s (ACC) chief economist on Monday.

“The consumer, which is two-thirds of the economy, is still engaged, and capital spending could accelerate in 2008 as company balance sheets are in good shape,” said Kevin Swift, the ACC’s chief economist, in a meeting with the trade press.

In addition, US exports are growing four times as fast as imports, helping US manufacturing.

“For the business of chemistry, we will have a surplus in the trade balance for the first time since 2001, and another one in 2008,” said Swift.

The economist estimates a chemical trade surplus of $500m (€340m) in 2007 and $2.1bn in 2008 versus a trade deficit of $7.3bn in 2006.

“Exports is an important leg of the stool holding the US economy up, along with the consumer,” said Swift. “The positives outweigh the negatives.”

Swift put the odds of a recession in the US at 40-45%.

($1.00 = €0.68)

By: Joseph Chang
+1 713 525 2653

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