Sales of chemicals at the wholesale level rose in February by 1.6%, to $9.8 billion, according to data from the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com) that are found in ACC’s latest Weekly Chemistry and Economic Report. Chemical inventories also rose in February by 1.2%, to $11.5 billion. The inventories-to-sales ratio is higher now than compared to a year ago, suggesting that there may be “some imbalances building at this stage of the supply chain,” the ACC report says.
The monthly balance in chemicals in the U.S. rose from a deficit of $103 million in January to a $288 million surplus in February. Overall, U.S. wholesale trade rose in February to $409.4 billion, and the trade deficit declined by $6.5 billion, to $46.0 billion, the ACC said, citing information from the U.S. Census Bureau.
Taking a wider look at the U.S. economy, ACC said the week’s economic reports were mostly positive, and there seems to be an increasing willingness on the part of U.S. consumers to take on debt to fuel spending, after five years of deleveraging.
Globally, China’s economic growth slowed for the fourth quarter in a row, and is at its lowest pace in three years, the report says. “A severe slowdown (or hard landing) in China is one risk to the global economy,” the report says.
Citing industrial production data from Europe, ACC says that the downturn there “may be easing,” and composite leading indicator (CLI) for the Organization for Economic Cooperation and Development (OECD) “continues point to a positive change in momentum in the OECD as a whole, but with some divergence between major economies.”