What is the Chemical Activity Barometer?
A leading economic indicator because of the chemistry industry’s early position within the supply chain, the Chemical Activity Barometer is a composite index measuring chemical activity. It includes a range of chemicals and sectors like chlorine and alkalies, pigments, plastics, and other industrial chemicals. Hours worked, chemical prices, end-use inventories, and broader economic measures are all considered when compiling a CAB reading.
Why is the Chemical Activity Barometer valuable?
As a leading index based on chemical industry data, it leads both overall industrial production and business cycles, making it invaluable to for forecasting. Its position in the supply chain also helps identify early shifts and future trends in the U.S. economy as well as shifts in other industries. Additionally, the CAB highlights the chemical industry’s driving role for economic growth.
What should you do?
If you’re looking for an indicator that highlights supply chain inputs and provides a better understanding of business cycle shifts follow the Chemical Activity Barometer. Majestic’s CORE Report follows the Chemical Activity Barometer; along with other indicators every week to see where the market stands.