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Chemical Production Regional Index

Global Chemical Output Falls for Third Straight Month as U.S. Production Slips

Following essentially flat growth in May, U.S. chemical production in June edged lower at the end of Q2. Output ticked lower by 0.5% for the month and was down 1.4% from a year earlier, according to new data from the American Chemistry Council (ACC).

“U.S. chemical production edged lower in June, reflecting softer growth in the broader manufacturing sector,” said David Lan, ACC’s Director of Economics and Statistics. “The industrial production index for manufacturing was essentially flat in June and the June Institute for Supply Management (ISM) Purchasing Managers Index (PMI) expanded, but at a slower pace. Those indicators are important for the chemical industry since  the 500 different process chemicals required to manufacture even the most basic semiconductor chips that power the modern economy

“Looking abroad, global chemical production fell 1.3% in June, down for a third consecutive month,” Lan said. “Ongoing disruptions stemming from the conflict in the Middle East continued to constrain output from that region, but also in Asia, the largest consuming region of Middle Eastern feedstock exports.”

He added: “Chemical production in Europe and North America were little changed in June. Output in South America fell and Russian chemical production was higher.

Key findings:

  • ↓ Global Chemical Output Lower: Following a 1.0% decline in May, the decline in global chemical production accelerated to 1.3% in June, with accelerating declines across all major segments. Compared to June 2025, global chemical output was off by 1.0%.
  • ↓ U.S. Output Weakened: U.S. chemical production fell by 0.5% as declines in the output of consumer products, agricultural chemicals, and basic chemicals & synthetic materials offset gains in the output of specialty chemicals. U.S. chemical production was off 1.4% from a year ago.
  • ↓ Chinese Production Moved Lower: In June, China’s chemical production declined for a third straight month, down 2.1%, and was off 1.4% from a year ago, the first negative annual comparison since April 2022. Data from China’s RatingDog Purchasing Managers Index (PMI) suggests that broader factory activity continued to expand in June, but at a slower pace. The official NBS PMI report noted that inventories of major inputs contracted as firms were destocking.
  • ↑ European Production Edged Slightly Higher: Chemical production in Europe rose 0.1% in June and was up 0.7% Y/Y. Higher chemical output in Italy, Germany and the UK was partially offset by lower production in France, the Netherlands, and other central and eastern European nations. Overall manufacturing output continued to expand for a sixth consecutive month in June, and new orders expanded marginally. Export demand for eased for a second month in a row, however.

South American Production Lower: Following seven straight months of gains, South America’s chemical output fell 0.3% in June. Compared to a year ago, however, production was up 2.8%. Gains in Chilean chemical production were offset by further declines in chemical production in Argentina and a smaller decline in Brazilian output. Brazil’s PMI reported overall manufacturing activity weakened in June, led by slower orders, production, and exports.

Check out ACC’s Economic Elements of Chemistry to see more industry data. 
 

Additional Data