WASHINGTON (April 27, 2021) – The Chemical Activity Barometer (CAB), a leading economic indicator created by the American Chemistry Council (ACC), rose 0.7% in April on a three-month moving average (3MMA) basis following a 1.1% increase in March and a 0.9% gain in February. On a year-over-year (Y/Y) basis, the barometer rose 12.0% in April (3MMA).
The unadjusted data show a 0.3% increase in April following a 1.4% gain in March. The diffusion index reached 100% in April. The diffusion index marks the number of positive contributors relative to the total number of indicators monitored. The CAB reading for March was revised downward by 0.35 points and the reading for February was revised downward by 0.58 points. The April data are provisional and subject to revision.
“The latest CAB reading is consistent with solid expansion of commerce, trade and industry,” said Kevin Swift, chief economist at ACC.
In April, production-related indicators were positive. Trends in construction-related resins and related performance chemistry were solid, indicative of robust gains in this sector. Resins and chemistry used in other durable goods were strong, reflecting growing orders for light vehicles, furniture, capital equipment, consumer electronics and other durable goods. Plastic resins used in packaging and for consumer and institutional applications were positive, a mark of rising consumer spending. Performance chemistry for industry was largely positive, reflecting strength in manufacturing. U.S. exports were positive. Equity prices showed further gains. Product and input prices were positive, as were inventory and other supply chain indicators.
Good news that the broader economy continues to do all right.