U.S. Chemical Production Ends 2018 On A High Note

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Jan 30, 2019, 13:20 ET

WASHINGTON, Jan. 30, 2019 /PRNewswire/ -- According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) rose by 0.6 percent in December, following a 0.3 percent gain in November and a 0.4 percent decline in October. During December, chemical output rose across all regions, with the largest gains in the Ohio Valley and Southeast regions.

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

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 rose by 0.3 percent in December, following a 0.1 percent gain in November. Output expanded in several chemistry-intensive manufacturing industries, including aerospace, machinery, fabricated metal products, computers and electronics, semiconductors, petroleum refining, iron and steel products, foundries, oil and gas extraction, plastic products, and furniture.

Compared with December 2017, U.S. chemical production rose 2.5 percent on a year-over-year basis. Chemical production was higher than a year ago in all regions, with the largest gains in the Gulf Coast.

	U.S. Chemical Production Regional Index, Percentage Change (Seasonally adjusted, 3-month moving average)

		Dec 18/ Nov 18	Dec 18/ Dec 17	Key products
Gulf Coast		0.6%	3.1%	petrochemicals, inorganics, plastics resins, and synthetic rubber
Midwest		0.5%	2.2%	agricultural chemicals, plastics, and paints
Ohio Valley		0.7%	2.1%	organic chemicals, plastics and synthetic materials, and specialty chemicals
Mid-Atlantic		0.6%	1.9%	consumer products
Southeast		0.7%	2.1%	inorganic chemicals, fibers, and consumer products
Northeast		0.5%	1.8%	consumer products and specialty chemicals
West Coast		0.5%	1.8%	basic chemicals, agricultural chemicals, and consumer products
U.S. Total		0.6%	2.5%

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 December reflects production activity during October, November, and December.

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