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U.S. Chemical Production Fell In August


News provided by

American Chemistry Council

Sep 26, 2019, 13:52 ET

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WASHINGTON, Sept. 26, 2019 /PRNewswire/ -- According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) fell 0.3 percent in August following revised declines of 0.7 percent in July and 0.6 percent in June. During August, chemical output was lower in all regions, with the largest declines in the Northeast and West Coast regions.

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, and pesticides. These gains were offset by declines in the output of synthetic rubber, coatings, fertilizers, consumer products, organic chemicals, synthetic dyes and pigments, industrial gases, adhesives, 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 three-month-moving average basis, manufacturing activity edged slightly higher for a second month in August, up by 0.2 percent. Output expanded in several chemistry-intensive manufacturing industries, including food and beverages, appliances, motor vehicles and parts, aerospace, construction supplies, fabricated metal products, computers, semiconductors, petroleum refining, oil and gas extraction, plastic products, and rubber products.

Compared with August 2018, U.S. chemical production in August was off 2.5 percent, a weakening year-earlier comparison. 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)



Aug 19/

Jul 19

Aug 19/

Aug 18

Key products

Gulf Coast

-0.1%

-2.9%

petrochemicals, inorganics, plastics resins, and synthetic rubber

Midwest

-0.4%

-2.2%

agricultural chemicals, plastics, and paints

Ohio Valley

-0.2%

-1.8%

organic chemicals, plastics and synthetic materials, and specialty chemicals

Mid-Atlantic

-0.4%

-2.2%

consumer products

Southeast

-0.3%

-1.5%

inorganic chemicals, fibers, and consumer products

Northeast

-0.7%

-1.8%

consumer products and specialty chemicals

West Coast

-0.5%

-1.9%

basic chemicals, agricultural chemicals, and consumer products

     U.S. Total

-0.3%

-2.5%


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 includes monthly revisions as published by the Federal Reserve. In order to smooth month-to-month fluctuations, the U.S. CPRI is measured using a three-month moving average. The August reading reflects production activity during June, July and August.

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

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