Weaker US economy trend continued in Sep – ACC

10 October 2008 20:07  [Source: ICIS news]

HOUSTON (ICIS news)--The weakening trend seen in August in US economic indicators affecting the chemical industry continued into September, the American Chemistry Council (ACC) said on Friday.

"The individual product reports were somewhat negative for August. Preliminary reports indicate that this continued into September, a trend reinforced by the recent weakness in chemical railcar loadings," the industry association said in a weekly commentary.

"On the other hand, the inventory-to-sales balance at the level of chemical wholesalers remains positive, as does the trade surplus in chemistry," it said.

Economic reports in the latest week were negative, with consumer credit falling as a result of slumping light vehicle sales, and wholesale trade falling as well.

"Import prices declined and may herald a deflationary trend," the ACC said, adding that it was "worrisome" that exports declined as well, a sign of weakness overseas.

A composite of leading indicators for the major industrialised economies points to a broad-based slowdown in global economic and industrial activity – in other words, a global recession, it said.

"This has been a leading factor in the free fall in equity markets," the ACC said.

To discuss how the financial crisis is affecting the chemicals industry visit this thread on ICIS connect

By: Stephen Burns
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