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American Chemistry Council Releases November 2010 Chemical Production Regional Index

Jenny Heumann (202) 249-6520
December 30, 2010

Data shows chemical production continues to improve in all regions

WASHINGTON, DC (December 30, 2010) – According to the American Chemistry Council (ACC), the Chemical Production Regional Index (CPRI) rose 0.6 percent in November, following an upwardly revised 0.6 percent gain in October, as chemical production increased in all regions with the largest gains in the Gulf Coast and Ohio Valley regions.

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

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

Compared to November 2009, total chemical production in all regions was up 2.2 percent and was up year-over-year in all regions. Over the past few months, improvement in year-over-year comparisons have been improving in the Gulf Coast and Ohio Valley regions with strong demand for U.S. petrochemicals and organic derivatives, but have been 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 November reflects production activity during September, October, and November. The CPRI is based on information from the Federal Reserve.

Gulf Coast
Following a revised 0.8 percent increase in October, chemical production in the Gulf Coast region rose by 1.2 percent in November. Compared to a year ago, production was up 6.4 percent, and up 9.9 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.

Midwest
In the Midwest region, which is influenced by production of agricultural chemicals, plastics, paints, and other chemical products, chemical production rose 0.5 percent in November, following a 0.6 percent gain in October. Compared to November 2009, Midwest chemical production was up 1.6 percent year-over-year, and up 3.8 percent on a year-to-date basis.

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 1.1 percent in November, following a revised 0.5 percent gain in October. Compared to November 2009, production in the region was up by 4.1 percent, and up 6.1 percent on a year-to-date basis.

Mid-Atlantic
In the Mid-Atlantic region, where pharmaceutical manufacturing is prominent, chemical production was up 0.3 percent in November, following a revised 0.6 gain in October. Mid-Atlantic chemical production was up 0.7 percent compared to November 2009, and up 2.9 percent on a year-to-date basis.

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 November, following a revised 0.6 percent gain in October. Southeast region chemical production was up 2.1 percent year-over-year, and up 4.7 percent on a year-to-date basis.

Northeast
In the Northeast region, which is influenced by pharmaceutical manufacturing and other specialty chemical manufacturing, chemical production rose 0.2 percent in November, following a revised 0.5 percent increase during October. Compared to November 2009, Northeast region chemical production was up 0.4 percent, and was up 2.4 percent on a year-to-date basis.

West Coast
In the West Coast region, chemical production was up 0.2 percent in November, following a revised 0.6 percent gain in October. Chemical production in the West Coast region was off 0.1 percent from last year, and up 2.1 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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