Global Chemical Production Continued to Weaken in May
Following flat growth in April, U.S. chemical production edged lower in May, despite the continued expansion in the broader manufacturing sector. Output slipped 0.3% for the month and was down 1.2% from a year earlier, according to new data from the American Chemistry Council (ACC).
“U.S. chemical production declined in May, even as the broader manufacturing sector continued to expand,” said David Lan, ACC’s Director of Economics and Statistics. “The Institute for Supply Management Purchasing Managers Index (PMI) reached its highest level in four years in May with broad gains across nearly all sectors. Chemistry is foundational to manufacturing, providing critical inputs to virtually all sectors, including aerospace, medical supplies, and semiconductors.”
“Looking more broadly, global chemical production fell 1.1% in May, on the heels of a decline in April,” Lan said. Supply disruptions tied to the ongoing global challenges continued to constrain both energy and chemical production in the Middle East and chemical production in other parts of the world dependent on deliveries of feedstocks and other inputs from that region.”
He added: “European production continued to advance, but output in North America eased. Production in Russia and South America were little changed.”