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Chemical Production Regional Index

Chemical Industry Rebounds Slightly as Key Manufacturing Indicator Strengthens

U.S. chemical production inched up 0.2% in February after dipping 0.1% the prior month. Production shrank for four consecutive months before the February uptick, according to new data from the American Chemistry Council (ACC).

“The U.S. chemical industry showed a modest improvement in February, breaking its earlier streak of weakness,” said David Lan, ACC’s Director of Economics and Statistics. “The ISM Manufacturing Purchasing Managers’ Index (PMI), including its chemical sector component—signaled expansion for the second straight month, pointing to a gradual recovery in U.S. chemical production early in the year.”

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

“Outside of the U.S., global chemical production showed continued growth in February, driven by increased output in the Africa & Middle East, Asia-Pacific, and North America regions, more than offsetting declines in Europe and South America and flat growth in the Former Soviet Union region” Lan added.

Key findings:

  • ↑ U.S. Output Ticks Up: U.S. chemical production increased across all regions except for the Ohio Valley, which was down only slightly, and the Mid-Atlantic, which was flat. Several industry segments declined, with the largest decline in paint and coatings output, down 2.8%, while organic chemicals, other specialties, and consumer products posted the biggest gains. Overall output was down by 1.8% compared with the same period last year.
  • ↑ China Steady: Following a 0.7% increase in January, China’s chemical output expanded 0.3% in February. Growth continued to be supported by strong export demand of high-tech equipment manufacturing and alternative energy products, as well as government-supported investment in infrastructure. Compared with last year, China’s chemical output rose 6.9%.
  • ↓ Europe Declines: European chemical production fell 0.2% in February after losing 0.8% the previous month. Rising energy costs, a shrinking auto sector, and increased import competition continued to constrain output. On a year‑over‑year basis, production dropped 3.2%.
  • ↓ South America Slides: South American chemical production shrank 0.2% in February, as output fell in all the region’s major economies. Chile and Argentina lost the most, decreasing 0.5% each. On a year‑over‑year basis, South American production was down 3.7%. 

Additional Data