U.S. Chemical Production Improves In July

25 August 2020

According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) rose by 0.8 percent in July following a 1.6 percent decline in June and a 2.0 percent decline in May. During July, chemical output expanded in all regions, with the largest gains in the Gulf Coast, Midwest, and Ohio Valley regions. The U.S. CPRI is measured on a three-month moving average (3MMA) basis.

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

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 July, with overall factory activity up by 4.9 percent on a 3MMA basis. Among industry segments, there was broad improvement, with gains in the output of food and beverages, appliances, motor vehicles, aerospace, construction supplies, fabricated metal products, computers, semiconductors, refining, iron and steel, foundries, plastic products, rubber products, tires, structural panels, printing, textile mill products, apparel, and furniture.

Compared with July 2019, U.S. chemical production was off by 5.9 percent – the fourteenth consecutive month of year-over-year declines, but an improvement over the past several months. Chemical production remained lower than a year ago in all regions, with the largest declines in the Northeast and West Coast regions.

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 July reflects production activity during May, June, and July.

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