Chemical Forecast Trimmed

The U.S. chemical industry’s main trade association is lowering its forecast for the sector this year. In its midyear economic outlook report, the American Chemistry Council anticipates that U.S. chemical output will rise by only 0.5% in 2012. Late last year the association predicted 1.2% growth for the year. ACC attributes the downgrade to the financial crisis in Europe, economic slowing in China and other emerging markets, and weakness in U.S. manufacturing. ACC has a brighter view of the years ahead. Owing in part to the favorable impact of shale gas on the domestic petrochemical industry, it expects U.S. chemical output growth to rebound to 2.3% in 2013, 2.8% in 2014, and 3.2% in 2015. Citing petrochemical investment, the association anticipates that capital spending by the U.S. industry will rise steadily from $35.5 billion in 2012 to $51.5 billion by 2017.