"The latest Economic Sentiment Index (ESI) readings show an uptick in chemical manufacturing activity in Q1 2025, with gains in production and new orders," said Martha Moore, Chief Economist at ACC. "This improvement comes despite a negative outlook on current U.S. and global economic conditions and ongoing weak customer demand."
Chemical Manufacturing Economic Sentiment Index
Chemical Manufacturers Report Gains Amid Growing Economic Concerns
Key Highlights from the Q1 ESI Report:
- Early Year Upswing: New orders, production, and capacity utilization increased in Q1. However, expectations for the next six months turned negative.
- Growing Pessimism: Chemical manufacturers noted worsening economic conditions in the U.S. and globally in Q1. Over the next six months, more than two-thirds expect conditions to worsen.
- Inflated Costs: Production costs rose in Q1, with increases in raw materials, energy, transportation, and labor. Manufacturers expect these costs to continue rising.
- Regulatory Relief: The regulatory burden in the U.S. has impacted manufacturers, deterring investments and innovation. With the new Administration, there is hope for regulatory relief. While the regulatory burden increased at a slower pace in Q1, manufacturers expect a slight increase over the next six months.
Regulatory Burden
Economic Conditions
New Orders
Capital Spending
Production
Economic Conditions – Measures chemical manufacturer’s outlook on the overall state of the economy.
Disclaimer
The ESI provides quarterly insights from chemical companies engaged in nearly every aspect of the manufacturing sector and the U.S. economy. You can view the complete findings of the latest quarter here.