Chemical industry production and sales data, long considered a leading economic indicator, point to a stronger economy ahead for the United States.
The Chemical Activity Barometer, released each month by the American Chemistry Council, increased by 0.7% in June, following a similar gain in May, and an upwardly revised 0.5% gain in April.
“The pattern represents an acceleration of productivity not seen since the first quarter of 2011,”ACC said. Data is measured on a three-month moving average.
The CAB remains up 3.7% over this time last year, also an acceleration of annual growth as compared to the first half of 2015. The CAB has four primary components: production; equity prices; product prices; and inventories and other indicators. During June the chemical equity process, product prices, and inventory all improved.
Retail Sales Picture Said Better Than It Looks
Although retail sales figures from the first quarter were not terribly encouraging, industry experts say the picture is much better than it looks and bodes well for a healthy 2016 for retailers.
“Until recently, we have either received mixed or disappointing economic data,” National Retail Federation Chief Economist Chief Economist Chief Economist Chief Economist Chief Economist Chief Economist Jack Kleinhenz explained on June 23.
“However, the new-found strength in the U.S. labor market will serve as a key factor for optimism moving forward,” he added.“With job growth averaging more than 200,000 a month and wage growth showing marked improvements, the U.S. economy is ripe for continued householdspending.”