You'll know the economy is improving if: Dow reports its customers have exhausted old supplies and are starting to buy again. When the recession hit, many of Dow's customers stopped buying its products, preferring instead to exhaust existing supplies, a process known as "destocking."
You'll know the economy is not improving if: Destocking continues and Dow's customers hold back on additional purchases. Dow rival DuPont Co.'s second-quarter profit was supported mainly by agricultural sales. If Dow's performance mirrors DuPont's, it'll be a bad sign for its core chemical business.
-Lee Brodie
http://www.cnbc.com/id/32204134
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