Another Q2 Slowdown

Hopes that a recovery would become more durable or even accelerate have been dashed by a second-quarter slowdown for a third consecutive year. Europe’s fiscal crisis has shifted sentiment back to “risk on” mode. And the consequent drop in oil, energy, and commodity prices is causing inventory destocking, particularly in commodity petrochemicals (p. 9). Some key sectors and regions remain strong, despite increasing gloom in Europe, producers say. U.S. demand appears to be solid and China has improved from weak early-2012 levels. Key markets such...

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