Chemical Engineering August 2014 - 72

Economic Indicators
2012
2013
CHemiCAl engineering PlAnt Cost indeX (CePCi)
(1957-59 = 100)
May '14
Prelim.
CE Index
Equipment
Heat exchangers & tanks
Process machinery
Pipes, valves & fittings
Process instruments
Pumps & compressors
Electrical equipment
Structural supports & misc
Construction labor
Buildings
Engineering & supervision
574.4
697.0
635.1
665.0
876.2
410.9
938.6
515.3
767.4
320.8
543.2
321.5
Apr. '14
Final
573.6
695.9
633.9
664.7
874.5
408.8
937.3
514.4
767.3
320.4
542.3
322.4
May '13
Final
566.5
685.4
624.3
655.1
863.4
410.6
919.3
513.1
741.7
319.7
534.0
325.5
DOWNLOAD THE cepci TWO WEEKS SOONER AT www.che.com/pci
625
Annual
Index:
2006 = 499.6
2007 = 525.4
2008 = 575.4
2009 = 521.9
2010 = 550.8
2011 = 585.7
2012 = 584.6
2013 = 567.3
600
575
550
525
500
J F M A M J J A S O N D
2014
Current Business indiCAtors*
CPI output index (2007 = 100)
LATEST
Jun. '14 =
CPI value of output, $ billions
CPI operating rate, %
Producer prices, industrial chemicals (1982 = 100)
Industrial Production in Manufacturing (2007 = 100)
Hourly earnings index, chemical & allied products (1992 = 100)
Productivity index, chemicals & allied products (1992 = 100)
CPi outPut indeX (2007 = 100)
100
75
80
85
90
95
J F M A M J J A S O N D
1800
1900
2000
2100
2200
2300
J F M A M J J A S O N D
*Current Business Indicators provided by IHS Global Insight, Inc., Lexington, Mass.
Jun. '14 =
Jun. '14 =
Jun. '14 =
Jun. '14 =
91.2 May '14 =
May '14 = 2,152.5
Jun. '14 =
76.8 May '14 =
PREVIOUS
90.8
76.6
288.9 May '14 = 288.4
99.7 May '14 =
99.6
158.4 May '14 = 155.4
108.3 May '14 = 107.8
CPi outPut VAlue ($ Billions)
70
72
74
76
78
80
J F M A M J J A S O N D
YEAR AGO
Apr. '14 =
Apr. '14 =
Apr. '14 =
Apr. '14 =
Apr. '14 =
Apr. '14 =
90.5
76.4
295.7
99.1
157.1
108.6
Jun. '13 =
Jun. '13 =
Jun. '13 =
Jun. '13 =
Jun. '13 =
CPi oPerAting rAte (%)
88.7
Apr. '14 = 2,156.4 Mar. '14 = 2,131.9 May '13 = 2,130.6
Jun. '13 =
75.6
303.1
96.4
156.0
106.2
HigHligHts From reCent ACC eConomiC dAtA
Current trends
he Chemical Activity Barometer (CAB), a leading economic indicator created by the
American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.
com), continued its upward growth in the month of June, showing a 0.5% gain from the
May CAB value. Though the pace of growth has slowed significantly, gains in June have
brought the CAB up a solid 4.3% over this time last year.
" Overall, we are seeing signs of continued growth in the U.S. economy, and trends in construction-related
chemistry show a market which has not yet reached its full potential, " said
Kevin Swift, chief economist at ACC. " However, unrest in Iraq is already affecting chemical
equity prices, and the potential for an energy price shock is worrying, " he added.
In one of its Weekly Chemistry and Economic Reports from July, the ACC said the current
number of chemical industry projects designed to take advantage of the growth in shale
gas production has grown to 188. The 188 total projects represent a cumulative capital
investment of $116.9 billion in the U.S., of which 62% is foreign direct investment. ACC
maintains and updates a list of shale-gas-related projects. In March of last year, the total
announced investment was $71.7 billion for 97 projects.
The ACC report mentioned the fact that the International Energy Agency (IEA; Paris;
www.iea.org) recognized the U.S. as the leading global producer of natural gas liquids.
In another Weekly Chemistry and Economic Report from July, the ACC noted that its
index for chemical company equity prices was flat in June. Since the beginning of the
year, the ACC index for chemical stocks is up 8.6%. ❑
T
72 ChemiCal engineering www.Che.Com august 2014
he preliminary value for the May
CE Plant Cost Index (CEPCI; top;
the most recent available) rose
0.1% from the final April value,
after a slightly larger rise the previous
month. All subcategories of the
index saw slight increases, except
for Engineering & Supervision,
which declined slightly. The preliminary
overall PCI value for May
2014 stands at 1.4% higher than
the value from May of last year.
Meanwhile, updated values for the
Current Business Indicators (CBI)
from IHS Global Insight (middle)
saw a small increase in the CPI
Output Index and a small decrease
in the the CPI Value of Output
compared to the previous month's
values. The Productivity Index for
chemicals moved slightly higher. ❏
T
http://www.che.com/pci http://www.americanchemistry http://www.iea.org http://www.Che.Com
Chemical Engineering August 2014

Table of Contents for the Digital Edition of Chemical Engineering August 2014
