Formulators / Manufacturers / Raw Materials and Chemicals

Economic Outlook for U.S. Chemistry Industry Mixed

Long-term growth in chemistry is expected to accelerate in 2013.
Following a strong 2011 fourth quarter, the U.S. economy started 2012 on firm ground with gains in consumer spending, manufacturing output and housing. Those positive gains appear to be eroding, according to the American Chemistry Council’s (ACC) Mid-Year 2012 Situation and Outlook. The report finds that first and second quarter 2012 growth was weak, and that underlying drivers will constrain growth for the remainder of the year.
Regarding the business of chemistry, the financial crisis in Europe, as well as the slowdown in China and other emerging economies, continues to take a toll on demand for U.S. exports. This outlook, coupled with weakness in U.S. manufacturing, will likely produce muted demand for chemical products in the second half of this year. Overall, American chemistry output is anticipated to rise by 0.5% in 2012, before accelerating to a 2.3% growth rate in 2013.
Despite a weakened outlook for GDP growth, global chemistry continues to advance, with expectations for output of chemicals in emerging markets to outpace production in developed countries. China is projected to continue to grow strongly, but at a slower pace than the previous decade. India, Africa, Latin America and other emerging markets will continue to expand, with the strongest growth in 2012 expected in specialty chemicals, consumer products, and agricultural chemicals. Overall, output is expected to grow by 2.3% in 2012, 4.3% in 2013, and 4.7% in 2014.

2012-2013 Outlook 

The rest of the year is expected to see slow growth, with improvements in investment spending and residential investment as the bright spots. Lower energy prices will support modest gains in consumer spending and help to offset the effects of high unemployment and low wage growth, which are constraining incomes. The consensus forecast for U.S. GDP is for continued growth, expanding by 2.2% in 2012 and 2.4% in 2013. The recovery remains fragile with multiple risks on the horizon, and the wrong trade, tax or other policy initiatives could derail activity.
In the chemical industry, strong gains in capital spending by American chemistry are expected during the next several years, resulting from announced new investment in petrochemicals and derivatives arising from shale gas developments. Capital spending in the business of chemistry will reach $35.5 billion in 2012 and will steadily rise to $51.5 billion in 2017.
Looking further ahead with an eventual resolution in Europe and rebounding growth in emerging markets, the American Chemistry Council expects growth in chemistry to accelerate in the coming years, growing faster than U.S. GDP.
For more information, visit

Did you enjoy this article? Click here to subscribe to Adhesives & Sealants Industry Magazine.

You must login or register in order to post a comment.



Image Galleries

ASI April 2014 Photo Gallery

Our April 2014 issue is now available!


ExxonMobil Tackifier Expansion

Dwight Tozer, vice president of ExxonMobil’s Adhesion Industry business, discusses the company’s latest tackifier expansion project with Editor-in-Chief Susan Sutton.

More Podcasts

Adhesives & Sealants Industry Magazine

ASI June 2015 cover

2015 June

Welcome to our annual Dispensing & Curing Equipment Directory!
Table Of Contents Subscribe

"Cultural Fit"

A recent opinion piece in the New York Times observed that new employees are often hired based on the personal similarities they share with their interviewers. How important is “cultural fit” when hiring someone?
View Results Poll Archive


Handbook of Sealant Technology

The Handbook of Sealant Technology provides an in-depth examination of sealants, reviewing their historical developments and fundamentals, adhesion theories and properties, and today’s wide range of applications.

More Products

ASI 2014 Buyers GuideASI's Buyers' Guide

Annual purchasing resource for equipment used in the manufacture/formulation of adhesives, sealants, pressure sensitives, tapes and labels and for application of finished adhesives. 


facebook_40px twitter_40  youtube_40pxlinkedin_40 google+ icon ASI 30px

Clear Seas Research

With access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.