U.S. chemical industry output will continue to grow in 2019 despite a challenging global economy, according to the American Chemistry Council’s (ACC) Mid-Year 2019 Chemical Industry Situation and Outlook. Growth in key domestic end-use markets and a sustained competitive advantage tied to surging supplies of natural gas and NGLs from shale activity are spurring new capital investment in American chemistry. Solid production gains are anticipated as new capacity comes online.
With slowing growth prospects across much of the globe and rising trade tensions, chemical exports are not performing as well as expected a year ago. Manufacturing also appears to be slowing. On the plus side, chemical inventories are in a more balanced position, housing is expected to ease slightly before continuing its slow recovery, and the automotive sector will stay at relatively elevated levels. Both are important end-use markets for chemistry.