30 May 2008 19:51 [Source: ICIS news]
TORONTO (ICIS news)--The US economy has not yet bottomed out and may worsen, Dow Chemical CEO Andrew Liveris said on Friday, describing the situation as ominous.
“A month ago we might have said … the ?xml:namespace>
“I think we are in for a tough 2008 and maybe even a tougher 2009.”
He described US economic conditions as ominous, and pointed to demand destruction on the consumer side because of mortgage and credit worries as well as rising costs of fuel and other products.
Asked about Dow’s decision earlier this week to increase all its product prices by up to 20% effective 1 June to cope with rising oil and energy costs, Liveris said many customers actually welcomed the move as it helped their sales people, in turn, to push for higher product prices themselves.
“Many of them are saying, ‘Thank you for the air cover.'”
He spoke of a broad process of re-setting the chemical value chain to a high oil and energy price environment.
Some 85% of
Asked about his comment on the energy strategies of the 2008
But he added that “a sane energy policy” would need to incorporate climate change.
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