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Chemical Production Regional Index

Global Chemical Output Continued to Decline in August Across Globe for the Fifth Straight Month

Global chemical manufacturing continued to move lower in August, with production declines across nearly every major region. The Global Chemical Production Regional Index (Global CPRI) fell for a fifth consecutive month, down 0.4% in August and was 2.9% lower than a year earlier, according to new data from the American Chemistry Council (ACC). 

“U.S. chemical production moved lower in July, declining 0.3% for the month and 3.7% from a year earlier”, said David Lan, ACC’s Director of Economics and Statistics. “The pullback occurred even as the broader U.S. manufacturing sector expanded according to the Institute for Supply Management (ISM) Purchasing Managers Index (PMI)® which showed continued expansion in overall manufacturing production, orders, and export orders.

“The steepest regional decline was again in the Middle East & Africa, where chemical output fell 3.7% in August and was 18.0% below its year-earlier level. Security concerns continue to reduce shipping in the region, impacting exports of feedstocks and chemical products.”

He added: “Chemical production also eased in Europe, China, and South America. The only major region to see higher production in August was Russia.”

Key findings:

  • ↓ Global Chemical Output Lower: The Global CPRI declined 0.4% in August and was down 2.9% from August 2025. Europe, North America, Asia-Pacific, the Middle East & Africa, and South America all recorded monthly declines, driving broad-based weakness in global chemical manufacturing for the month.
  • ↓ U.S. Output Slowed: U.S. chemical manufacturing declined 0.3% in August and was 3.7% below its year-earlier level. The downturn in chemical production contrasted with continued expansion in the broader manufacturing sector. Manufacturing surveys suggested broader manufacturing activity expanded in August and according to Federal Reserve’s industrial production data, 14 of 20 key chemistry-consuming manufacturing sectors expanded.
  • ↓ Chinese Production Weakened: China’s chemical manufacturing index declined 0.5% in August and was 4.1% below its year-earlier level. Survey readings on broader manufacturing activity were mixed in August with the RatingDog Manufacturing PMI® suggesting an accelerating expansion while the National Bureau of Statistics reading suggested a slight contraction.
  • ↓ European Production Declined: European chemical manufacturing fell 0.6% in August and was 0.1% lower than its year-earlier level. Chemical output declined across most countries in the region, with Belgium, Italy, Germany and France posting particularly pronounced monthly decreases. The broader European manufacturing backdrop gained momentum, however, according to S&P. The improvement in Eurozone manufacturing activity was led by Germany, in particular, and reflects the strongest rise in factory orders in four years.
  • ↓ Middle East & Africa Declines Continued: Chemical manufacturing in the region declined 3.7% in August and was 18.0% below its year-earlier level. Chemical production in Saudi Arabia continued to decline, while Turkish output expanded slightly during the month. Shipping security concerns and disruptions through major regional waterways contributed to longer transit times and schedule uncertainty. S&P surveys suggest that private sector output expanded in Saudi Arabia, UAE, Kuwait, and Lebanon, but contracted in Qatar and Egypt.
  • ↓ South American Production Lower: South American chemical manufacturing declined 0.5% in August but remained 2.2% above its year-earlier level. Chemical output fell in Brazil, Argentina, and Chile during the month, although all three countries remained above their year-earlier levels. Brazil’s broader manufacturing downturn deepened as production, new orders, and export orders declined.
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Check out ACC’s Economic Elements of Chemistry to see more industry data. 
 

Additional Data