Frank Mitsch: Got you. Well, we are seeing oil starting to pick up since the beginning of July. But I wanted to also ask a bigger-picture macro question. You know, given that the guide for the year assumes no recession, and you know you’d been indicating that you’ve been seeing red turn to yellow turn to green. I believe you mentioned last quarter and reading through the release, you know, it sounded fairly promising. So I’m just curious as to where do you stand on the whole hard landing, soft landing, no landing for the U.S. economy for your fiscal year.
Frank Sullivan: Yes. I think – and maybe Rusty can comment on this. Rusty Gordon has captured the sentiment of this a bit better than any economist I know, and maybe it’s a combination of his reading and seeing our numbers. But it feels like we’re going through a rolling recession and the housing market is taking it on the chin, you can see it in our Specialty Products Group results, you can see it in companies that serve residential construction and/or the components that go into that, furniture and other things. Retail takeaway has not been very strong across many categories. And as we commented in the second half of last year, POS in our categories tended to be mid- to high-negative single-digits. We’re seeing that improve, which means it’s less bad.
And so I’m hopeful that there’ll be somewhat of a soft landing in the sense that this is a rolling recession. Again, Europe went in early. We’re seeing better performance in Europe. I think there is more stability around the impact of the Russia war on Ukraine. We’re rounding easier, comps and quite candidly, there’s some reasonable growth in the U.K., for instance. And the U.K. seems to be performing better than continental Europe as we sit here. And for us that’s a good thing because a little less than half of our revenues in Europe come out of the U.K. And so that’s the best shot I have at that, Frank. And other than to say a lot of our performance in this quarter and what we expect in the second quarter is as much self-help as it is counting on any economic green shoots or pickups.
Frank Mitsch: Very helpful. Thank you so much.
Frank Sullivan: Thank you.
Operator: The next question comes from Kevin McCarthy of Vertical Research Partners. Please go ahead.
Frank Sullivan: Good morning, Kevin.
Kevin McCarthy: Good morning. Frank, I wanted to ask about the impact of fiscal stimulus. It seems like the infrastructure and reshoring project contributions have really gained some traction over the last couple of quarters. Can you speak to the kind of the magnitude and duration of that tailwind? Do you think it will continue to accelerate as the year progresses or flatten out? And when do you see the peak in that phenomenon?
Frank Sullivan: Yes. I still think that there is a significant amount of fiscal stimulus coming. You know, the infrastructure bill that was passed on a bipartisan basis I think was $1.2 trillion. I think the analysis of that not all of it was infrastructure. But you know if half of it, $500 billion or $600 billion was infrastructure, that’s still coming. I can – you can see that in highway construction. You could see that in the onshoring of manufacturing. You can see that in some expansions in airports. So I think as we sit here today, we see that having a pretty good runway for the next 1.5 years or two years. And that’s our best guess. It’s not having any impact on residential construction and the housing market. And I think that in commercial construction as well.
