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WASHINGTON (July 25, 2019) – According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) rose by 0.2 percent in June, following a 0.4 percent gain in May and a 0.3 percent gain in April. During June, chemical output was up in the Gulf Coast, Midwest, Ohio Valley and Southeast regions. These gains were offset by lower production 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, plastic resins, organic chemicals, synthetic dyes and pigments, organic chemicals, inorganic chemicals, industrial gases, adhesives, manufactured fibers, and other specialty chemicals. These gains were offset by declines in the output of pesticides, synthetic rubber, coatings, fertilizers, and consumer products.

US CPRI chart1_0719 

Nearly all manufactured goods are produced using chemistry in some form. Thus, manufacturing activity is an important indicator for chemical production. On a 3MMA basis, manufacturing activity was flat in June, following four months of declines. Output expanded in several chemistry-intensive manufacturing industries, including motor vehicles and parts, construction supplies, computers, semiconductors, petroleum refining, plastic products, oil and gas extraction, paper, structural panels, apparel and furniture.

Compared with June 2018, U.S. chemical production was up 1.5 percent on a year-over-year basis, a weaker comparison than in May. Chemical production was higher than a year ago in all regions, with the largest gains in the Gulf Coast and Northeast regions.

USCPRI_Chart2-July2019

The chemistry industry is one of the largest industries in the United States, a $526 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 June reflects production activity during April, May and June.

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