U.S. Chemical Production Rises In All Regions In September

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Oct 24, 2019, 11:41 ET

WASHINGTON, Oct. 24, 2019 /PRNewswire/ -- According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) rose by 0.3 percent in September following declines of 0.2 percent in August and 0.7 percent in July. During September, chemical output was up across all regions, with the largest gain in the Gulf Coast region.

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

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 edged lower in September, off by 0.1 percent. Output expanded in several chemistry-intensive manufacturing industries, including appliances, aerospace, computers, semiconductors, petroleum refining, iron and steel products, oil and gas extraction, paper, structural panels and furniture.

Compared to September 2018, U.S. chemical production was off by 1.8 percent on a year-over-year basis, a improving (less negative) year ago comparison than in August. Chemical production was lower than a year ago in all regions, with the largest year ago declines in the Gulf Coast, Midwest, and Mid-Atlantic regions.

U.S. Chemical Production Regional Index, Percentage Change (Seasonally adjusted, 3-month moving average)
	Sep 19/ Aug 19	Sep 19/ Sep 18	Key products
Gulf Coast	0.4%	-1.6%	petrochemicals, inorganics, plastics resins, and synthetic rubber
Midwest	0.3%	-1.2%	agricultural chemicals, plastics, and paints
Ohio Valley	0.3%	-0.4%	organic chemicals, plastics and synthetic materials, and specialty chemicals
Mid-Atlantic	0.3%	-0.9%	consumer products
Southeast	0.3%	-0.3%	inorganic chemicals, fibers, and consumer products
Northeast	0.2%	-0.7%	consumer products and specialty chemicals
West Coast	0.3%	-0.9%	basic chemicals, agricultural chemicals, and consumer products
U.S. Total	0.3%	-1.8%

The chemistry industry is one of the largest industries in the United States, a $553 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 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 $553 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