04 November 2011 18:02 [Source: ICIS news]
HOUSTON (ICIS)--Recent US manufacturing numbers indicate that the chemical industry is contracting, the American Chemistry Council (ACC) said on Friday.
According to the latest report from the Institute for Supply Management, (ISM) chemical companies experienced faster deliveries during October, and inventories were deemed too high.
“Chemical company inventories apparently trended lower,” the ACC said in its weekly economic report.
“But the chemical industry did report a decrease in new orders, as well as production and the backlog of orders. Imports and employment declined as well,” the group added.
The ISM report is significant for the chemical industry because, on average, the goods sectors purchase $43 (€31) worth of chemicals for every $1,000 worth of revenues, the ACC said.
“As a result, production of basic industrial chemicals and specialties tends to track this PMI [purchasing managers index] fairly well,” the ACC said. “The report doesn’t fare well for the industry.”
($1 = €0.72)
Paul Hodges studies key influences shaping the chemical industry in Chemicals and the Economy
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