Gains Continue In U.S. Chemical Production

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Aug 27, 2018, 10:38 ET

WASHINGTON, Aug. 27, 2018 /PRNewswire/ -- According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) expanded by 0.4 percent in July, following a 0.8 percent gain in June, and a 1.1 percent gain in May. During July, chemical output moved higher in all regions, with gains broadly distributed among the regions.

Chemical production was mixed over the same three month period. There were gains in the production three-month moving average output trend of organic chemicals; coatings; adhesives; other specialties; pesticides; fertilizers; industrial gases; consumer products; and synthetic dyes and pigments. These gains were offset by declines in the output trend in plastic resins; synthetic rubber; chlor-alkali; and other inorganic chemicals.

Nearly all manufactured goods are produced using chemistry in some form or another. Thus, manufacturing activity is an important indicator for chemical production. On a three-month-moving average basis, manufacturing activity edged higher by 0.4 percent in July, following a 0.1 percent gain in June. Output expanded in several chemistry-intensive manufacturing industries, including aerospace; construction supplies; machinery; fabricated metal products; computers & electronics; semiconductors; petroleum refining; plastic products; tires; structural panels; and textile mill products.

Compared to July 2017, U.S. chemical production was ahead 2.6 percent on a year-over-year basis. Chemical production was higher than a year ago in all regions.

	U.S. Chemical Production Regional Index, Percentage Change (Seasonally adjusted, 3-month moving average)
		Jul 18/ Jun 18	Jul 18/ Jul 17	Key products
Gulf Coast		0.1%	1.7%	petrochemicals, inorganics, and plastics resins, and synthetic rubber
Midwest		0.6%	2.4%	agricultural chemicals, plastics, and paints
Ohio Valley		0.2%	3.1%	organic chemicals, plastics and synthetic materials and specialty chemicals
Mid-Atlantic		0.5%	3.0%	consumer products
Southeast		0.3%	2.9%	inorganic chemicals, fibers, and consumer products
Northeast		0.6%	3.2%	consumer products and specialty chemicals
West Coast		0.7%	2.8%	basic chemicals, agricultural chemicals and consumer products
U.S. Total		0.4%	2.6%

The chemistry industry is one of the largest industries in the United States, a $768 billion enterprise. The manufacturing sector is the largest consumer of chemical products, and 96 percent of manufactured goods are touched by chemistry. The U.S. CPRI was developed to track chemical production activity in seven regions of the United States. The U.S. CPRI is based on information from the Federal Reserve, and as such, includes monthly revisions as published by the Federal Reserve. To smooth month-to-month fluctuations, the U.S. CPRI is measured using a three-month moving average. Thus, the reading in July reflects production activity during May, June, and July.

http://www.americanchemistry.com/newsroom
The American Chemistry Council (ACC) represents the leading companies engaged in the business of chemistry. ACC members apply the science of chemistry to make innovative products and services that make people's lives better, healthier and safer. ACC is committed to improved environmental, health and safety performance through Responsible Care, common sense advocacy designed to address major public policy issues, and health and environmental research and product testing. The business of chemistry is a $768 billion enterprise and a key element of the nation's economy. It is one of the nation's largest exporters, representing fourteen cents out of every dollar in U.S. exports. Chemistry companies are among the largest investors in research and development. Safety and security have always been primary concerns of ACC members, and they have intensified their efforts, working closely with government agencies to improve security and to defend against any threat to the nation's critical infrastructure.

SOURCE American Chemistry Council