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Chemical Production Regional Index

U.S. Chemical Manufacturing Trends down

Following a 0.3% decline in October, U.S. chemical production fell by another 0.6% in November, according to the American Chemistry Council (ACC).

“The U.S. chemical industry lost more momentum in November,” said David Lan, ACC’s Director of Economics and Statistics. “With production down in every region, the data reflect persistent headwinds from economic uncertainty and trade tensions.”

“The chemical industry is a key economic bellwether, as American manufacturing depends on chemical inputs to support production across sectors - from electronics and energy to housing and autos,” Lan explained.

“Outside of the U.S., global chemical production also continued to weaken (down by 0.1%) despite gains in Asia, South America and former Soviet Union countries,” Lan added.

Key findings:

  • ↓ U.S. Output Falls: Chemical production fell across all U.S. regions, with declines in nearly every segment. The only exception was inorganics, which edged up by 0.2%.
  • ↓ China Slows: After remaining flat in October, output slipped by 0.2% in November. Part of this decline may stem from earlier stockpiling, which pulled production forward into prior months. However, the weakness also appears linked to softer fundamentals, including sluggish consumer spending, weaker industrial activity, and continued stress in the property market.
  • ↓ Europe Contracts: Production dropped 0.3% in November, as high energy costs and trade uncertainty continued to drive restructuring across the sector. German and French output improved this month, but a weak PMI suggests uncertain future performance.
  • ↑ South America Stabilizes: Production rebounded by 0.8% in November after a sharp decline in October. Nevertheless, persistently high inflation and ongoing trade tensions continue to exert pressure on the region’s output.

Additional Data