20 June 2013 12:17 [Source: ICIS news]
LONDON (ICIS)--The decline of chemicals production levels in Europe intensified in April, due in part to weakening manufacturing levels in the region, US-based analyst Bernstein Research said on Thursday.
Indicators such as May’s Global PMI Index suggest that manufacturing in the EU is decelerating, and the region’s economy is continuing to contract, weighing on chemicals producers, Bernstein said.
EU chemicals production volumes fell by 0.9% month on month and 3% year on year in April, the firm added.
However, indicators suggest that volumes may stabilise in coming months, according to Bernstein.
Despite similarly sluggish manufacturing levels, chemicals production in the US increased slightly in May, growing by 0.7% month on month and 1% year on year, while strong volume growth was recorded in Brazil, India and China.
Bernstein said: “The recent volume trends are clearly more positive for US chemicals stocks. European chemical volume declines accelerated in April, but leading indicators suggest volumes might stabilise in the coming months.
“While the near-term production statistics continue to be weak, these are offset by improvements in the leading indicators,” the firm added.
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