Dark economic picture gets darker - chem council

15 November 2008 01:15  [Source: ICIS news]

HOUSTON (ICIS news)--The top economist for the American Chemistry Council (ACC) painted a gloomier US financial picture on Friday, saying exports “appear to by drying up in the face of tepid economic growth overseas” and the American consumer has “left the building” with the worst drop in retail sales since records began in 1992.

“Other than government spending, this [exports] represents the last major leg supporting economic growth,” said ACC chief economist Kevin Swift in his weekly report.

The council’s weekly running tab of positive economic indicators slipped to three out of 20, Swift said.

If the current global economic slump were to grow to match the average post-war recession, he said, it will represent the most severe downturn in a generation.

“Those readers that don’t remember Apocalypse Now playing at the theatre have not lived through a recession of such magnitude in their business careers,” Swift said.

“Turning to the business of chemistry, the final plastic resin reports for September paint a tough picture,” Swift said. “The effects of the hurricanes were present in the production figures but sales and captive use [which generally occurs outside the Gulf region] has been soft as well.”

In addition, the preliminary October reports provided little evidence of strength beyond the rebound from the hurricanes, he added.

The American Chemistry Council reported that total supply of polystyrene in the US plummeted to 339m lbs (154,000 tonnes) in September, which was off 27.1% from the supply in September 2007 and off by 9.2% year to date.

Sales and captive use in September was off 22.8% year on year and 6.2% year to date. Major markets for polystyrene (PS) are in packaging, consumer and institutional products, electrical and electronic applications and construction.

To discuss issues facing the chemical industry go to ICIS connect
Paul Hodges studies key influencers shaping the chemical industry in Chemicals and the Economy

By: Brian Ford
+1 713 525 2653

< previous article(VIDEO – ICIS news Americas Lunchtime Bulletin 27 October 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly