Indicator on the rise.(KEY CHANGES--LEADING INDICATOR)(Statistical data)

The leading indicator for the chemical industry advanced in October following a slight dip in September. All components of the indicator posted gains. After several months hovering at low levels, the indicator appears to be on an upward trajectory, signaling a rebound in the chemical industry, analysts say.

The average chemical industry stock price is on the rise, and profits have begun to rebound. Earnings began to grow in the first quarter of 2009 after dropping about 40% in 2008. By the second quarter, industry profits were 81.6% above the low reached in the final three months of 2008. However, they were still 18% below profits recorded in second quarter 2008.

The indicator was also buoyed by the gain in production in the chemical process industries. Output rose 1.5%, driven by gains in nonferrous metals, paper, and rubber and plastics. The other …