Overall economic sentiment for U.S. chemical manufacturers stayed mostly positive in Q2 2026, with some indexes sliding slightly from the all-time highs reached in Q1, according to the American Chemistry Council’s (ACC) latest Chemical Manufacturing Economic Sentiment Index (ESI).
The indexes of new orders and capacity utilization stayed high but dipped slightly compared to Q1. At the same time, the indexes measuring production and companies’ overall activity increased to record or near record highs. Optimism over the next six months declined, however.
Capital spending decelerated but remained positive for the third straight quarter.
The index for major customer demand rose and stayed in positive territory for the second straight quarter. However, companies’ assessment of U.S. economic conditions declined deeper into negative territory.
“Chemical manufacturing activity indexes generally expanded in the second quarter, with some indexes rising while others decelerated” said Diego Saltes, ACC’s Director of Economics and Data Analytics. “All activity benchmarks portrayed continued growth, however.”
“Chemical manufacturers are still facing high production costs, with transportation and labor costs indexes accelerating in Q2. At the same time, energy costs softened over the same timeframe,” he continued. “Meanwhile, companies’ employee headcount contracted while the availability of skilled labor increased.
“Raw materials inventories were flat as finished goods inventories increased for the first time since early 2025,” Saltes added.
“There was a decline in expectations for the next six months that carried over from Q1, as companies’ assessments of the outlook for U.S. and global economies remained weak amid high production costs,” Saltes concluded.