The Chemical Activity Barometer (CAB), reportedly a leading economic indicator created by the American Chemistry Council (ACC), dropped 0.4% in September, following a revised 0.2% drop in August. The pattern shows a marked deceleration over second quarter activity. Accounting for adjustments, the CAB remains up 1.2% over this time last year. It is unlikely that growth will pick up through early 2016.
The chemical industry has been found to consistently lead the U.S. economy's business cycle given its early position in the supply chain, and this barometer can be used to determine turning points and likely trends in the wider economy