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American Chemistry Council Releases January 2011 Chemical Production Regional Index

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

WASHINGTON, D.C. (February 21, 2011) – According to the American Chemistry Council (ACC), the Chemical Production Regional Index (CPRI) rose 1.1 percent in January, following an upwardly revised 1.0 percent gain in December, as chemical production increased in all regions, with the largest gains in the Ohio Valley, Southeast, and Gulf Coast regions.

Output of the nation’s manufacturing sector was up 0.3 percent in January following a 0.9 percent gain in December. Output grew in many key-end use markets for chemistry products, including computers and electronics, motor vehicles, plastics and rubber products, paper, machinery, and furniture.

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

Compared to January 2010, total chemical production in all regions was up 2.8 percent and was up year-over-year in all regions. Over the past few months, improvement in year-over-year comparisons have been occurring in the Gulf Coast, Ohio Valley, Midwest, and Southeast regions, with strong demand for U.S. petrochemicals and organic derivatives. Year-ago comparisons in the Mid-Atlantic and West Coast regions have been steady in recent months.

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 January reflects production activity during November, December and January. The CPRI is based on information from the Federal Reserve.

Following a revised 1.4 percent increase in December, chemical production in the Gulf Coast region rose by 1.3 percent in January. Compared to a year ago, production was up 6.8 percent. 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 1.0 percent in January, following a 0.9 percent gain in December. Compared to January 2010, Midwest chemical production was up 2.1 percent year-over-year.

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 1.4 percent in January, following a revised 1.3 percent gain in December. Compared to January 2010, production in the region was up by 4.7 percent.

In the Mid-Atlantic region, where pharmaceutical manufacturing is prominent, chemical production was up 0.9 percent in January, following a revised 0.8 gain in December. Mid-Atlantic chemical production was up 1.1 percent compared to January 2010.

In the Southeast region, which is influenced heavily by production of basic chemicals, fibers, agricultural and other chemical products, chemical production increased 1.4 percent in January, following a revised 1.2 percent gain in December. Southeast region chemical production was up 3.0 percent year-over-year.

In the Northeast region, which is influenced by pharmaceutical manufacturing and other specialty chemical manufacturing, chemical production rose 1.0 percent in January, following a revised 0.8 percent increase during December. Compared to January 2010, Northeast region chemical production was up 0.8 percent.

In the West Coast region, chemical production was up 0.9 percent in January, following a revised 0.7 percent gain in December. Chemical production in the West Coast region was up 0.6 percent from last 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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