MOSCOW (MRC) -- The Chemical Activity Barometer (CAB), a leading economic indicator created by the American Chemistry Council (ACC), rose 1.2% in March on a three-month moving average (3MMA) basis, following a 1.0% increase in February, said ACC.
On a year-over-year (Y/Y) basis, the barometer rose 5.5% in March.
The unadjusted data show a 1.2% gain in March following a 0.9% gain in February, ACC said. The diffusion index rebounded to 82% in March, well above the long-term average of 58%. The diffusion index marks the number of positive contributors relative to the total number of indicators monitored. The CAB reading for February was revised upward by 0.18 points and the reading for January was revised downward by 0.57 points. The March data are provisional and subject to revision.
In March, production-related indicators were positive. Trends in construction-related resins and related performance chemistry were solid and suggest further expansion past the weak February home sales and housing starts. Resins and chemistry used in other durable goods were strong. Plastic resins used in packaging and for consumer and institutional applications were positive. Performance chemistry for industry was mixed. U.S. exports were positive, while equity prices showed further gains. Product and input prices were positive, as were inventory and other supply chain indicators.
As it was written earlier, Chemical Activity Barometer (CAB), a leading economic indicator created by the American Chemistry Council (ACC), rose 1.0% in February on a three-month moving average (3MMA) basis following a 1.8% increase in January. On a year-over-year (Y/Y) basis, the barometer rose 1.3% in February.
We remind, that Russia's output of chemical products rose in February 2021 by 5.3% year on year. Thus, production of basic chemicals increased year on year by 7.5% in the first two months of 2021. According to the Federal State Statistics Service of the Russian Federation, mineral fertilizers accounted for the greatest increase in the January-February output. Production of benzene dropped to 113,000 tonnes in February 2021, compared to 120,000 tonnes a month earlier. Overall output of this product reached 241,000 tonnes over the stated period, down by 7.5% year on year.
The CAB is a leading economic indicator derived from a composite index of chemical industry activity. Due to its early position in the supply chain, chemical industry activity has been found to consistently lead the U.S. economy’s business cycle, and the barometer can be used to determine turning points and likely trends in the broader economy. Month-to-month movements can be volatile, so a three-month moving average of the CAB reading is provided. This provides a more consistent and illustrative picture of national economic trends.
MRC