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WASHINGTON (September 6, 2019) – According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) fell by 0.9 percent in July following revised declines of 0.8 percent in June and 0.6 percent in May. During July, chemical output was lower in all regions, with the largest declines in the Mid-Atlantic, Northeast and West Coast regions.

Chemical production was mixed over the three-month period. There were gains in the production three-month moving average (3MMA) output trend in chlor-alkali and other inorganic chemicals. These gains were offset by declines in the output of pesticides, synthetic rubber, coatings, fertilizers, consumer products, plastic resins, organic chemicals, synthetic dyes & pigments, adhesives, manufactured fibers, and other specialty chemicals.

CPRI Sept 2019 i

Nearly all manufactured goods are produced using chemistry in some form. Thus, manufacturing activity is an important indicator for chemical production. On a three-month-moving average basis, manufacturing activity edged slightly higher in July, following five months of declines. Output expanded in several chemistry-intensive manufacturing industries, including food and beverages, appliances, motor vehicles and parts, aerospace, construction supplies, machinery, computers, petroleum refining, plastic products, rubber products, structural panels and furniture.

Compared with July 2018, U.S. chemical production was off by 2.7 percent on a year-over-year basis, a weaker comparison than in June. Chemical production was lower than a year ago in all regions, with the largest year ago declines in the Midwest and West Coast regions.

chartGlobal Production Sept 2019

The chemistry industry is one of the largest industries in the United States, a $553 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 to track chemical production activity in seven regions of the United States. The U.S. CPRI is based on information from the Federal Reserve, and as such, includes monthly revisions as published by the Federal Reserve. To smooth month-to-month fluctuations, the U.S. CPRI is measured using a three-month moving average. Thus, the reading in July reflects production activity during May, June, and July.

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