U.S. Chemical Industry Set to Grow Again

2009-07-15 | 07:43

Council sees modest gain in 2010.

The worst may be over for the U.S. chemical industry, according to economists at the American Chemistry Council, an industry trade association. According to ACC economists, a weak first half of 2009 means that U.S. chemical production will drop 8.1% this year. However, the ACC predicts sales will rise 1.6% in 2010 and 2.2% in 2011.

Not exactly reasons for rejoicing, but after nearly two years of recession, expectations for gains have become modest. According to the ACC, positive signs include the fact that U.S. personal spending, consumer spending, existing home sales and orders for durable goods were all up year-over-year in May. The bad news is that poor U.S. auto sales and new home sales will continue to be a drag on the economy.

Globally, emerging Asian economies have stabilized and gains in production have resumed.