DOW INC. 
(MT Newswires) -- Dow CEO Jim Fitterling shares a cautious but optimistic view of the US economy, which is showing signs of strength early in the year, although it is too early to determine whether this is a sustainable trend. The electronics sector is performing better than last year, and is anticipating a good year for the automotive sector despite mixed feelings about electric vehicles.
The housing sector is off to a slow start, but there has been an increase in the construction of single-family homes, which could have positive effects on other industries. Fitterling remains cautious, hoping for modest growth, and is keeping an eye on possible rate cuts by the Fed, which could boost growth and inflation. He notes that the chemicals and raw materials sector is often ahead of economic cycles.
In Europe, consumer demand is weaker and the chemical sector is under pressure from high entry costs. Energy costs are weighing on European consumers, with electricity tariffs significantly higher than in the US. Fitterling raises concerns about the sustainability of industrial activities in Europe in the face of international competition and high costs.
He touches on the subject of inflation, noting a fall in the cost of raw materials, which has favoured Dow's project in Canada. However, some consumer costs have not yet fallen, but he expects this to change gradually.
Fitterling criticises the impact of tariffs on global demand and defends free trade as a driver of economic growth and improved global living standards. He highlights energy innovation with Dow's new project in Canada, which aims to become the world's first zero-emission ethylene plant, powered by hydrogen. This project, supported by government incentives and a carbon price, is expected to be competitive and profitable from the moment it comes on stream. Dow is also exploring the use of modular nuclear reactors to reduce carbon emissions in other facilities.
