Construction spending in the US dipped 0.3% in January after a 0.8% gain in December, as a 0.6% drop in private spending outweighed a matching rise in the public sector, according to a report by American Chemistry Council.
Private residential and non-residential construction both fell. Compared to a year ago, total construction spending was up 1.0% Y/Y, analysts noted.
Import prices (excluding tariffs) jumped 1.3% in February—the largest monthly increase since March 2022—while export prices surged 1.5%, marking the biggest rise since May 2022. Year-over-year, import prices were up 1.3% and export prices increased 3.5%.
Global semiconductor sales maintained their rapid climb in January, rising 3.7% to $82.5 billion. Gains were broad-based across regions except Japan, with China and Europe leading the charge. “Compared to a year ago, global semiconductor sales were up 46.1%,” the report said. Analysts highlighted the role of more than 500 highly pure process chemicals in production.
Expectations for the U.S. economy weakened in March, according to the Association of Commerce and Currency’s Survey of Economic Forecasters: “U.S. GDP is expected to grow by 2.3% in 2026, slightly lower than last month’s survey. In 2027, growth in GDP is expected to moderate to a 2.1% pace.”
Consumer spending growth is projected to slow to 2.1% in 2026 before easing to 2.0% in 2027. Business investment, buoyed by AI and power infrastructure, is expected to ease only slightly to 3.8% in 2026, before settling around 3.4% in 2027. Industrial production is forecasted to grow 1.1% in 2026 and 1.3% in 2027, both lower than February’s estimates.
Vehicle sales are expected to dip to a 15.7 million pace in 2026 before rebounding to 16.2 million in 2027. Housing starts are expected to ease to 1.35 million in 2026, with a modest recovery to 1.39 million in 2027.
“The unemployment rate is expected to continue to rise, averaging 4.4% in 2026 and remain steady at a 4.4% rate in 2027.”
Inflation growth is expected to slow slightly, averaging 2.7% in 2026 and 2.4% in 2027.
The 10-year Treasury yield is forecasted to move lower in 2026 and hold steady in 2027.
“The US dollar is expected to strengthen against the euro in 2026 before retreating 2027.”
Global outlook:
1. Global GDP growth is projected at 2.9% in 2026 and 3.0% in 2027.
2. Inflation remains elevated, expected to accelerate to 3.9% in 2026 before easing to 3.3% in 2027.
3. Industrial output is expected to grow 2.8% in 2026 and 3.0% in 2027.
4. World trade volumes are projected to rise 2.4% in 2026 and 2.8% in 2027.
Chemical sector snapshots:
Chemical railcar loadings rose to 36,302 for the week ending March 21, up 2.1% Y/Y and 3.6% YTD.
Chemical import prices rose 0.6% in February, while exports gained 1.1%. Year-over-year, import prices were down 1.3% and export prices fell 0.3%.
Chemical construction spending totalled $45.6 billion in January, up 0.8% from December and 11.5% Y/Y. “Chemical manufacturing construction represented 23.4% of all manufacturing construction spending in January, up from 17.8% a year ago and the highest share since November 2022.”
Global chemical production edged up 0.2% in February, with Taiwan and South Korea leading gains. “On a year-over-year basis, global chemical production was up 3.1% in February 2026.”
Energy update
Brent crude stayed above $100 following Iran’s rejection of U.S. negotiations; US natural gas prices hovered near $3/mmbtu as production set new records; The combined oil and gas rig count remained stable at 545.