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U.S. Chemical Production Edges Higher To Start The Year


News provided by

American Chemistry Council

Feb 18, 2020, 11:44 ET

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WASHINGTON, Feb. 18, 2020 /PRNewswire/ -- According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) edged higher by 0.1 percent in January following a 0.1 percent decline in December and a 0.2 percent decline in November. During January, chemical output declined across all regions except the Gulf Coast.

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

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 rose by 0.3 percent in January, a second consecutive increase following three months of declines. Output expanded in several chemistry-intensive manufacturing industries, including food and beverages, appliances, motor vehicles, construction supplies, computers and electronics, semiconductors, refining, iron and steel products, foundries, oil and gas extraction, plastic products, rubber products, paper, printing, and furniture.

Compared with January 2019, U.S. chemical production was off by 1.6 percent on a year-over-year (Y/Y) basis, the eighth consecutive month of Y/Y declines. Chemical production was lower than a year ago in all regions, with the largest declines in the Mid-Atlantic, Northeast, and Ohio Valley regions.


U.S. Chemical Production Regional Index, Percentage Change

(Seasonally adjusted, 3-month moving average)


Jan 20/
Dec 19

Jan 20/
Jan 19

Key products


Gulf Coast

0.6%

-1.5%

petrochemicals, inorganics, plastics resins, and synthetic rubber


Midwest

-0.2%

-1.6%

agricultural chemicals, plastics, and paints


Ohio Valley

-0.2%

-1.8%

organic chemicals, plastics and synthetic materials, and specialty chemicals


Mid-Atlantic

-0.4%

-1.9%

consumer products


Southeast

-0.2%

-1.6%

inorganic chemicals, fibers, and consumer products


Northeast

-0.4%

-1.8%

consumer products and specialty chemicals


West Coast

-0.5%

-1.7%

basic chemicals, agricultural chemicals, and consumer products


     U.S. Total

0.1%

-1.6%









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

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

Related Links

http://www.americanchemistry.com

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