Reports on regional economic conditions submitted to the U.S. Federal Reserve by district banks indicate that overall economic activity continued to expand last month, albeit at a slow pace, according to the most recent Weekly Chemistry and Economic Report from the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com).
Citing information from Federal Reserve’s Beige Book, the ACC report notes that consumer spending was up slightly in most districts, with light-vehicle sales leading the way in several of them. “Business spending increased somewhat, particularly for construction and mining equipment,” the ACC report says, “but many districts noted restraint in hiring and capital spending plans.”
Several of the districts contributing to the Beige Book mentioned the chemical industry specifically, according the ACC report. For example, the Atlanta district reported that volumes of chemical shipments were particularly strong, and in the Dallas district, petrochemical demand was noted to have weakened in September, with two ethylene plants shutting down. Domestic demand for polyethylene was said to be weak, and the strong dollar has cut off exports to Asia and Europe, and weakened exports to Latin America, the ACC report related.
Citing data from the National Bureau for Economic Research, the ACC said indications are that industrial production is increasing, along with inflation-adjusted overall business sales. “As a result,” ACC says, “the evidence about another recession isn’t there, and the high-frequency data (such as unemployment claims and railcar loadings) suggest that economic activity expanded in October.”