U.S. Chemical Production Declines In February

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Mar 21, 2019, 13:21 ET

WASHINGTON, March 21, 2019 /PRNewswire/ -- According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) fell by 0.4 percent in February, following a revised 0.2 percent gain in January and a 0.5 percent gain in December. During February, chemical output fell across all regions, with the largest declines in the Gulf Coast and Ohio Valley regions.

Chemical production was mixed over the three-month period. There were gains in the production three-month moving average (3MMA) output trend in inorganic chemicals, synthetic rubber, fertilizers, consumer products, manufactured fibers and other specialty chemicals. These gains were offset by declines in the output of plastic resins, organic chemicals, adhesives, pesticides and coatings.

Nearly all manufactured goods are produced using chemistry in some form. Thus, manufacturing activity is an important indicator for chemical production. On a 3MMA basis, manufacturing activity slipped by 0.1 percent in February, the first decline since May 2018. Output expanded in several chemistry-intensive manufacturing industries, including food and beverages, aerospace, construction supplies, fabricated metal products, computers and electronics, oil and gas extraction, plastic products, rubber products, and tires.

Compared with February 2018, U.S. chemical production was up by 4.4 percent on a year-over-year basis, an improving comparison. Chemical production was higher than a year ago in all regions, with the largest gains in the Gulf Coast region, reflecting gains in the output at new shale-advantaged plants.

	U.S. Chemical Production Regional Index, Percentage Change (Seasonally adjusted, 3-month moving average)
		Feb 19/ Jan 18	Feb 19/ Feb 18	Key products
Gulf Coast		-0.7%	5.4%	petrochemicals, inorganics, plastics resins, and synthetic rubber
Midwest		-0.5%	4.0%	agricultural chemicals, plastics, and paints
Ohio Valley		-0.6%	3.3%	organic chemicals, plastics and synthetic materials, and specialty chemicals
Mid-Atlantic		-0.4%	3.3%	consumer products
Southeast		-0.5%	3.6%	inorganic chemicals, fibers, and consumer products
Northeast		-0.1%	4.0%	consumer products and specialty chemicals
West Coast		-0.3%	3.5%	basic chemicals, agricultural chemicals, and consumer products
U.S. Total		-0.4%	4.4%

The chemistry industry is one of the largest industries in the United States, a $526 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 February reflects production activity during December, January, and February.

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 $526 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