Chemical industry downturn warns of recession in 2017

Key indicators flashing red

Tom Eckett
clock • 2 min read

Paul Hodges, chairman of advisory firm International eChem, has warned of imminent global recession and increased currency volatility on the back of protectionism-driven trade wars.

In its pH Report for November/December 2016, the firm, which acts as a commercial adviser to the global chemical industry and its investment community, said warnings signs from the chemical industry are pointing global recession in 2017. The firm looked at a key measure, the global chemical capacity utilisation percentage (CU%), which it said correlates closely to global GDP and can be "a more reliable economic indicator than consistently overoptimistic IMF forecasts". Capital Group's Carlyle: Is the US due a recession? This measure has dropped to its lowest level since 2009 this y...

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