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American Chemistry Council Releases September 2011 Chemical Production Regional Index


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

Data shows chemical production was flat in September.  

WASHINGTON, DC (October 26, 2011) – According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) was flat in September, following a revised 0.1 percent decline in August. Chemical production rose in the Gulf Coast and Ohio Valley regions, but was flat or declined in other parts of the country.

Output of the nation’s manufacturing sector rose 0.4 percent in September, following a 0.3 percent gain during August. Output in several key chemistry end-use markets rose, including wood products, paper, construction materials, computers, electrical equipment and plastics and rubber products. 

Output of chemistry products also rose in September. Recent data for September show gains in production of petrochemicals, plastic resins, synthetic rubber, pesticides, and man-made fibers, industrial gases, dyes and pigments, adhesives, coatings, and other specialties. Declines were posted in the production of inorganic chemicals, fertilizers, and pharmaceuticals. Output of consumer products was flat.

Compared to September 2010, total chemical production in all regions was up 1.2 percent and remained ahead year-over-year in all regions, except the Gulf Coast. Year-over-year comparisons continue to weaken across the board. As fears of a Eurozone recession and subsequent negative impact on the global economy grow, manufacturing output and exports have slowed curbing growth in chemical output despite the rising competitiveness of US chemicals related to new supplies of shale gas.

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. 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). Thus, the reading in September reflects production activity during July, August, and September.

 


In the Midwest region, which is influenced by production of agricultural chemicals, plastics, paints, and other chemical products, chemical production was flat in September, following a revised 0.1 percent decline in August. Compared to September 2010, Midwest chemical production was up 0.4 percent year-over-year, and up 1.3 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 rose by 0.4 percent in September, following a revised 0.2 percent gain in August. Compared to September 2010, production in the region was up by 2.3 percent, and up 2.8 percent on a year-to-date basis.

In the Mid-Atlantic region, where pharmaceutical manufacturing is prominent, chemical production was off 0.2 percent in September, following a revised 0.2 percent decline in August. Mid-Atlantic chemical production was up 0.8 percent compared to September 2010, and up 1.3 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 was flat in September, following a revised 0.2 percent decline in August. Southeast region chemical production was up 2.2 percent year-over-year, and up 2.1 percent on a year-to-date basis.

In the Northeast region, which is influenced by pharmaceutical manufacturing and other specialty chemical manufacturing, chemical production fell 0.1 percent in September, following flat growth during August. Compared to September 2010, Northeast region chemical production was up 2.7 percent, and up 2.3 percent on a year-to-date basis.

In the West Coast region, chemical production fell 0.2 percent in September, following a revised 0.2 percent decline in August. Chemical production in the West Coast region was up 0.7 percent from last year, and up 1.0 percent on a year-to-date basis.

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