The Chemical Activity Barometer (CAB), a leading economic indicator created by the American Chemistry Council (ACC), strengthened slightly in December, rising 0.2 percent following a similar gain in November. All data is measured on a three-month moving average (3MMA). Accounting for adjustments, the CAB remains up 1.5 percent over this time last year, a marked deceleration of activity since the second quarter.
The Chemical Activity Barometer has four primary components, each consisting of a variety of indicators: 1) production; 2) equity prices; 3) product prices; and 4) inventories and other indicators.
During December chemical equity prices retreated after two months of strong gains. Product prices were mixed, and inventories were fairly stable.
