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American Chemistry Council Releases December 2010 Chemical Production Regional Index

Jenny Heumann, (202) 249-6520
January 24, 2011

Data shows chemical production continues to improve in all regions

WASHINGTON, DC (January 24, 2011) – According to the American Chemistry Council (ACC), the Chemical Production Regional Index (CPRI) rose 0.5 percent in December, following a 0.6 percent gain in November, as chemical production increased in all regions of the United States, with the largest gains in the Gulf Coast and Ohio Valley regions.

Output of the nation’s manufacturing sector was up 0.8 percent, following a 0.3 percent gain during November. Output grew in many key-end use markets for chemistry products, including computers, electronics, and plastics and rubber products.

Output of chemical products also rose during December following a decline in November. Recent data for December show gains in the production of organic chemicals, plastic resins, synthetic rubber,  coatings, adhesives, and other specialties. These gains were partially offset by declines in the production of pharmaceuticals, industrial gases, consumer products, inorganic chemicals, synthetic dyes and pigments, artificial fibers, pesticides, and fertilizers.

Compared to December 2009, total chemical production in all regions was up 2.0 percent and was up year-over-year in all regions. Over the past few months, improvement in year-over-year comparisons are seen in the Gulf Coast, Midwest, Ohio Valley and Southeast regions, with strong demand for basic chemicals, resins, and manmade materials, but have been flat or moderating in other regions.

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 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. To smooth month-to-month fluctuations, the CPRI is measured using a three-month moving average (3MMA). The reading in December reflects production activity during October, November and December. The CPRI is based on information from the Federal Reserve.

Gulf Coast
Following a revised 1.4 percent increase in November, chemical production in the Gulf Coast region rose by 1.1 percent in December. Compared to a year ago, production was up 8.5 percent, and up 10.2 percent for the year. The Gulf Coast region is dominated by the production of key building block materials, such as petrochemicals, inorganics, and synthetic materials.

Midwest
In the Midwest region, which is influenced by production of agricultural chemicals, plastics, paints, and other chemical products, chemical production rose 0.6 percent in December, following a 0.6 percent gain in November. Compared to December 2009, Midwest chemical production was up 2.2 percent year-over-year, and up 3.9 percent for the year.

Ohio Valley
In the Ohio Valley region, which is largely influenced by production of basic chemicals, plastics and synthetic rubber, coatings, and consumer products, chemical production rose 0.8 percent in December, following a revised 1.2 percent gain in November. Compared to December 2009, production in the region was up by 5.0 percent, and up 6.3 percent for the year.

Mid-Atlantic
In the Mid-Atlantic region, where pharmaceutical manufacturing is prominent, chemical production was up 0.5 percent in December, following a revised 0.5 gain in November. Mid-Atlantic chemical production was up 1.0 percent compared to December 2009, and up 3.0 percent for the year

Southeast
In the Southeast region, which is influenced heavily by production of basic chemicals, fibers, agricultural and other chemical products, chemical production increased 0.7 percent in December, following a revised 1.0 percent gain in November. Southeast region chemical production was up 2.8 percent year-over-year, and up 4.7 percent for the year.

Northeast
In the Northeast region, which is influenced by pharmaceutical manufacturing and other specialty chemical manufacturing, chemical production rose 0.5 percent in December, following a revised 0.4 percent increase during November. Compared to December 2009, Northeast region chemical production was up 0.6 percent, and was up 2.3 percent for the year.

West Coast
In the West Coast region, chemical production was up 0.5 percent in December, following a revised 0.4 percent gain in November. Chemical production in the West Coast region was up 0.2 percent from last year, and up 2.1 percent for the year.

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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