The IeC Boom/Gloom Index remains cautious as we enter the New Year.
Meant to track sentiment in financial markets, it shows clearly that talk of 'green shoots' (green line) leading to a quick recovery has virtually stopped. Whilst the reading for 'frugal' (red line) steadied, as we went into the Christmas period.
The Index itself (blue column) is confirming the caution shown in most chemical company comments in recent weeks. It has failed to recover the levels seen before the end of 2007. The next few weeks may well provide a good indication of whether this caution is justified.