U.S. Chemical Production Expands In August

24 September 2020

The U.S. Chemical Production Regional Index (U.S. CPRI) rose by 0.6 percent in August following a 1.0 percent gain in July and a 1.4 percent decline in June, according to the American Chemistry Council (ACC). During August, chemical output expanded in all regions except the West Coast, with the largest gains occurring in the Gulf Coast region. The U.S. CPRI is measured on a three-month moving average (3MMA) basis.

In August, chemical production continued to improve in many segments, including, plastic resins, chlor-alkali, organic chemicals, industrial gases, synthetic dyes and pigments, consumer products, synthetic rubber, manufactured fibers and fertilizers. Production moved lower in adhesives, coatings, other specialty chemicals, and crop protection chemicals.

As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. The recovery strengthened in August, with overall factory activity up by 4.1 percent on a 3MMA basis. Production increased for all key chemistry end-use industries that ACC tracks, with the strongest gains in appliances, motor vehicles, aerospace, foundries, iron and steel, refining, plastic and rubber products, tires, and apparel.

Compared with August 2019, U.S. chemical production was off by 4.8 percent on a year-over-year (Y/Y) basis, the fifteenth consecutive month of Y/Y declines, but an improvement over the past several months. Chemical production remained lower than a year ago in all regions, with the largest year -ago declines in the Northeast, Mid-Atlantic, and West Coast regions.


U.S. Chemical Production Regional Index, Percentage Change

(Seasonally adjusted, 3-month moving average)


Aug 20/
Jul 20

Aug 20/
Aug 19

Key products


Gulf Coast



petrochemicals, inorganics, plastics resins, and synthetic rubber





agricultural chemicals, plastics, and paints


Ohio Valley



organic chemicals, plastics and synthetic materials, and specialty chemicals





consumer products





inorganic chemicals, fibers, and consumer products





consumer products and specialty chemicals


West Coast



basic chemicals, agricultural chemicals, and consumer products


     U.S. Total




The chemistry industry is one of the largest industries in the United States, a $565 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 August reflects production activity during June, July, and August.

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 $565 billion enterprise and a key element of the nation's economy. It is among the largest exporters in the nation, accounting for ten percent of all U.S. goods 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: prnewswire.com