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ACC Releases April 2011 Chemical Production Regional Index


Contact: Jenny Heumann (202) 249-6520  
Email: jenny_heumann@americanchemistry.com

Data shows chemical production continues to improve in all regions

WASHINGTON, D.C. (May 18, 2011) – According to the American Chemistry Council (ACC), the Chemical Production Regional Index (CPRI) rose 0.3 percent in April, following flat growth in March, as chemical production increased in all regions, with the largest gains in the Northeast, Ohio Valley, Midwest and Mid-Atlantic regions.

Output of the nation’s manufacturing sector fell by 0.5 percent in April, following a 0.6 percent gain during March. Output grew in several key end-use markets for chemistry products, including computers and electronics, printing, textile and product mills, and plastic and rubber products. Output of motor vehicles and parts, however, fell sharply due to supply chain disruptions resulting from the March earthquake and tsunami in Japan.

Output of chemistry products rose strongly during the month of April. Recent data for April show gains in production of plastic resins, synthetic rubber, man-made fibers, industrial gases, pharmaceuticals, consumer products, adhesives and other specialties, which were offset by declines in petrochemicals, inorganic chemicals, coatings, fertilizers and pesticides.

Compared to April 2010, total chemical production in all regions was up 2.1 percent and was up year-over-year in all regions. Over the past few months, year-over-year comparisons have been improving in all regions except in the Gulf Coast and Ohio Valley regions where year-ago comparisons have weakened. Chemical output remains below its prerecession peak despite improving demand by U.S. customers and strong export markets.

The chemistry industry is one of the largest industries in the United States, a $674 billion enterprise. The manufacturing sector is the largest consumer of chemical products, and 96 percent of manufactured goods are touched by chemistry.

The Chemical Production Regional Index was developed by Moore Economics to track chemical production activity in seven regions of the United States. It is comparable to the U.S. industrial production index for chemicals published by the Federal Reserve. The CPRI is based on information from the Federal Reserve. To smooth month-to-month fluctuations, the CPRI is measured using a three-month moving average (3MMA). The reading in April reflects production activity during February, March, and April.

 

Following revised flat growth in March, chemical production in the Gulf Coast region rose by 0.1 percent in April. Compared to a year ago, production was up 3.2 percent, and up 3.6 percent on a year-to-date basis. The Gulf Coast region is dominated by the production of key building block materials, such as petrochemicals, inorganics and synthetic materials.

In the Midwest region, which is influenced by production of agricultural chemicals, plastics, paints and other chemical products, chemical production rose 0.4 percent in April, following a revised 0.1 percent decline in March. Compared to April 2010, Midwest chemical production was up 1.8 percent year-over-year, and up 1.4 percent on a year-to-date basis.

In the Ohio Valley region, which is largely influenced by production of basic chemicals, plastics, synthetic rubber, coatings and consumer products, chemical production rose 0.6 percent in April, following a revised 0.3 percent gain in March. Compared to April 2010, production in the region was up by 2.8 percent, and up 2.6 percent on a year-to-date basis.

In the Mid-Atlantic region, where pharmaceutical manufacturing is prominent, chemical production was up 0.4 percent in April, following a revised 0.2 percent decline in March. Mid-Atlantic chemical production was up 1.6 percent compared to April 2010, and up 1.0 percent on a year-to-date basis.

In the Southeast region, which is influenced heavily by production of basic chemicals, fibers, agricultural and other chemical products, chemical production increased 0.3 percent in April, following flat growth in March. Southeast region chemical production was up 2.1 percent year-over-year, and up 1.3 percent on a year-to-date basis.

In the Northeast region, which is influenced by pharmaceutical manufacturing and other specialty chemical manufacturing, chemical production rose 0.8 percent in April, following a 0.1 percent increase during March. Compared to April 2010, Northeast region chemical production was up 2.5 percent, and up 1.3 percent on a year-to-date basis.

In the West Coast region, chemical production was up 0.3 percent in April, following a revised 0.3 percent decline in March. Chemical production in the West Coast region was up 1.0 percent from last year, and up 0.4 percent on a year-to-date basis.

The Chemical Production Regional Index (CPRI) was developed by Moore Economics to track chemical production activity in seven regions of the United States. It is comparable to the U.S. industrial production index for chemicals published by the Federal Reserve. The CPRI is based on information from the Federal Reserve.

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