Contact: Jenny Heumann (202) 249-6520
Data shows chemical production continues to improve in all regions.
WASHINGTON, D.C. (July 22, 2011) – According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) fell 0.3 percent in June, following a 0.2 percent gain in May, as chemical production slipped or remained stable in all regions except the Northeast.
Output of the nation’s manufacturing sector was flat in June, following a 0.1 percent gain during May. Output grew in several key end-use markets for chemistry products, including textile and product mills, machinery, and construction supplies. Production of other chemistry-intensive products (i.e., plastic and rubber products, furniture, computers, etc.) declined. In particular, motor vehicle and parts production continued to fall due to ongoing supply chain disruptions and weak domestic demand.
Output of chemistry products rose during the month of June. Recent data for June show gains in production of consumer products, petrochemicals, inorganic chemicals, plastic resins, and other specialties which were offset by declines in pharmaceuticals, industrial gases, synthetic rubber, man-made fibers, fertilizers, pesticides, adhesives, and coatings.
Compared to June 2010, total chemical production in all regions was up 2.9 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 where year-ago comparisons have weakened. Chemical output remains below its prerecession peak as the domestic manufacturing sector has pulled back.
The chemistry industry is one of the largest industries in the United States, a $720 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. Chemical Production Regional Index (U.S. 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 U.S. CPRI is based on information from the Federal Reserve. To smooth month-to-month fluctuations, the U.S. CPRI is measured using a three-month moving average (3MMA). The reading in June reflects production activity during April, May, and June.
Following a 0.6 percent decline in May, chemical production in the Gulf Coast region fell by 1.0 percent in June. Compared to a year ago, production was up 1.7 percent, and up 3.3 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 fell 0.2 percent in June, following a revised 0.2 percent gain in May. Compared to June 2010, Midwest chemical production was up 2.7 percent year-over-year, and up 2.2 percent on a year-to-date basis.
In the Ohio Valley region, which is largely influenced by production of basic chemicals, plastics and synthetic rubber, coatings, and consumer products, chemical production slipped by 0.3 percent in June, following a 0.1 percent gain in May. Compared to June 2010, production in the region was up by 4.7 percent, and up 3.8 percent on a year-to-date basis.
In the Mid-Atlantic region, where pharmaceutical manufacturing is prominent, chemical production was flat in June, following a revised 0.3 percent gain in May. Mid-Atlantic chemical production was up 2.8 percent compared to June 2010, and up 1.8 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 fell 0.2 percent in June, following a 0.2% gain in May. Southeast region chemical production was up 3.7 percent year-over-year, and up 2.4 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 0.4 percent in June, following a 0.6 percent increase during May. Compared to June 2010, Northeast region chemical production was up 4.7 percent, and up 2.7 percent on a year-to-date basis.
In the West Coast region, chemical production was flat in June, following a revised 0.3 percent gain in May. Chemical production in the West Coast region was up 2.4 percent from last year, and up 1.3 percent on a year-to-date basis.