In May 2014, the Chemical Activity Barometer (CAB), a leading economic indicator created by the American Chemistry Council (ACC), posted its highest year-over-year gains since September 2010, the US chemical producers grouping said.

Measured on a three-month moving average, the CAB gained 0.8% against April 2014 and rose 4.1% against May 2013. ACC said the data reflect upward revisions for the previous five months, suggesting more than just a rebound from the adverse winter months.

"The index reveals that the underlying fundamentals are good," said chief economist Kevin Swift. "Based on weekly data, production-related indicators showed healthy growth in May, beating the average 0.3% gain in the first quarter," he added.

Though housing starts improved last month and sales of existing and new homes were up, activity within the construction-related plastic resins segment was mixed.

In contrast, the chemical producers said gains were seen in the pigments and other performance chemistry markets, such as adhesives, sealants, and paint additives.

The upswing in the electronics chemicals sector was encouraging as the semiconductor industry is a bellwether of the industrial cycle, the grouping added, noting also that gains in oilfield chemicals "suggest that the boom in unconventional oil and gas continues to progress, enhancing overall economic growth."