A Delicate Balance

The leading indicator for the chemical industry dropped 0.7% in February, after two months of gaining back some lost ground. The index peaked in early 2006 at 198.33, and is currently about 4.5% below that high. Production levels peaked a few months later and are currently about 2.9% below the high attained last August. There was a rise in industrial production in the chemical process industries, one of the major components, and a decline in new orders for key manufactured products and the housing market. Strong gains in petroleum refining, rubber and plastics...

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