Trade Groups Forecast Modest Growth For Chemicals

The American Chemistry Council, the main U.S. trade group for chemical firms, expects U.S. production of chemicals to increase by 3.0% in 2014, more than double the 1.3% uptick seen last year. The industry will grow faster than the overall domestic economy, which is expected to expand by about 2.3%. Lower feedstock costs resulting from the shale gas boom will spur strong growth in plastics and other organic chemicals. Demand from markets such as vehicles and construction will drive specialty chemicals growth, ACC says. European chemical firms, meanwhile, will benefit from improving demand for autos and buildings, but a slow economy and high energy prices will hold growth in Europe’s chemical output to 2.0%, says CEFIC, ACC’s European counterpart. For 2015, ACC expects U.S. chemical growth will accelerate to 3.4%. In contrast, CEFIC predicts growth in European chemical output will slow to 1.5% next year.