A new report by the American Chemistry Council (ACC) shows that the pace of the global chemicals industry is slowing. Global production on a year-over-year basis grew 4.7% in the first quarter, and is up 4.9% excluding pharmaceuticals. Chemical production this year is expected to increase 4.7%, up slightly from the 4.5% growth of 2006. China, other Asian-Pacific nations, Africa and the Middle East, and Central and Eastern Europe all grew strongly during the year. For both 2008 and 2009, the ACC forecasts a growth rate of 3.7% and states that the fastest growth will be in Asia-Pacific (excluding Japan), Africa and the Middle East, Central and Eastern Europe, and Latin America. Germany and Ireland are expected to post the most rapid growth among developed countries. Global capital spending in the chemical industry increased 9.4% in 2006. Over the next three years, capital spending is forecast to increase by an annual average of 6.2%.

Source: Hydrocarbon Processing