U.S. chemical manufacturers’ overall level of activity deteriorated in the fourth quarter but is expected to recover through the first half of 2025 according to companies participating in ACC’s quarterly Chemical Manufacturing Economic Sentiment Index survey. ACC’s index, based on companies’ assessment of their activity level overall (e.g., sales, production, output) fell, losing momentum in Q4 as chemical manufacturers reported weak demand in major customer markets and challenging economic conditions in the U.S. and abroad.
Most companies described major customer market demand as having either flattened or deteriorated in Q4. The volume of new orders index fell in Q4, reflecting declines in both domestic and foreign orders. The outlook is good though. Companies see business conditions improving over the coming six months and for the first time, that optimism includes expectations for some relief in the level of regulatory burden.