U.S. Chemical Production Declined In September

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Oct 27, 2021, 09:30 ET

WASHINGTON, Oct. 27, 2021 /PRNewswire/ -- Reflecting ongoing hurricane disruptions and supply chain challenges, the U.S. Chemical Production Regional Index (U.S. CPRI) fell by 1.5% in September following a 0.4% decline in August and a 1.1% gain in July, according to the American Chemistry Council (ACC). Chemical output fell sharply in the Gulf Coast region and declined in other regions. The U.S. CPRI is measured as a three-month moving average (3MMA).

Chemical production was mixed in September (3MMA), showing an improving trend in the production of synthetic rubber, manufactured fibers, other specialty chemicals, fertilizers, crop protection chemicals, adhesives, coatings, and consumer products. These gains were offset by weakness in organic chemicals, plastic resins, basic inorganic chemicals, and industrial gases.

As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. Following a 0.4% gain in August, manufacturing output expanded by 0.2% in September (3MMA). The 3MMA trend in manufacturing production was mixed, with gains seen in the output of appliances, aerospace, construction supplies, fabricated metal products, machinery, computers, iron and steel products, plastic products, paper, printing, textile mill products, apparel, and furniture.

Compared with September 2020, U.S. chemical production was up 3.5%, a weaker comparison than last month. 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)
		Sep 21/ Aug 21	Sep 21/ Sep 20	Key products
Gulf Coast		-2.5%	3.7%	petrochemicals, inorganics, plastics resins, and synthetic rubber
Midwest		-1.4%	3.8%	agricultural chemicals, plastics, and paints
Ohio Valley		-1.2%	3.4%	organic chemicals, plastics and synthetic materials, and specialty chemicals
Mid-Atlantic		-0.9%	3.7%	consumer products
Southeast		-1.1%	3.5%	inorganic chemicals, fibers, and consumer products
Northeast		-0.5%	4.1%	consumer products and specialty chemicals
West Coast		-0.8%	4.0%	basic chemicals, agricultural chemicals, and consumer products
U.S. Total		-1.5%	3.5%

The chemistry industry is one of the largest industries in the United States, a $486 billion enterprise. The manufacturing sector is the largest consumer of chemical products, and 96% 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 includes monthly revisions as published by the Federal Reserve. The U.S. CPRI includes the most recent Federal Reserve benchmark revision released on May 28, 2021. To smooth month-to-month fluctuations, the U.S. CPRI is measured using a three-month moving average. The reading in September reflects production activity during July, August, and September.

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 $486 billion enterprise and a key element of the nation's economy. It is one of the nation's largest exporters, representing ten 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