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Chemical Production Regional Index

Global Chemical Output Declines Across All Major Regions in July

Global chemical manufacturing weakened broadly in July, with production declining across every major region. The Global Chemical Production Regional Index (Global CPRI) fell for a fourth consecutive month, down 0.6% in July and was 1.8% lower than a year earlier, according to new data from the American Chemistry Council (ACC). 

“U.S. chemical production moved lower in July, declining 0.5% for the month and 2.6% 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 an acceleration in production, orders, and exports.

“The steepest regional decline occurred in the Middle East & Africa, where chemical output fell 4.2% in July and was 15.2% below its year-earlier level, as disruptions related to the ongoing conflict in the Middle East continued to affect regional operations and created uncertainty around feedstock deliveries. Shipping through the region remained constrained, impacting exports of feedstocks and chemical products.”

He added: “Elsewhere, chemical production declined in Europe, China, and South America. Europe and South America remained above year-earlier levels, while China and North America were lower.”

Key findings:

  • ↓ Global Chemical Output Lower: The Global CPRI declined 0.6% in July and was down 1.8% from July 2025. Europe, North America, Asia-Pacific, the Middle East & Africa, and South America all recorded monthly declines, pointing to broad-based weakness in global chemical manufacturing. 
  • ↓ U.S. Output Weakened: U.S. chemical manufacturing declined 0.5% in July and was 2.6% below its year-earlier level. The downturn in chemical output came despite an accelerating expansion in the broader manufacturing sector, according to the ISM Manufacturing PMI® report. Thirteen of 20 key chemistry-consuming manufacturing sectors expanded in July, according to Federal Reserve’s industrial production data. 
  • ↓ Chinese Production Moved Lower: China’s chemical manufacturing index declined 0.8% in July and was 2.5% below its year-earlier level. Economy-wide manufacturing indicators were mixed: the RatingDog Manufacturing PMI® showed continued but softer expansion, while the official NBS survey indicated a slight contraction and weaker export orders.  
  • ↓ European Production Declined: European chemical manufacturing fell 0.4% in July but remained 0.5% above its year-earlier level. Germany was broadly stable, while France and the Netherlands recorded monthly declines. The broader manufacturing backdrop varied by country, with stronger activity in some markets alongside weaker orders and output elsewhere.
  • ↓ Middle East & Africa Posted the Steepest Decline: Chemical manufacturing in the region declined 4.2% in July and was 15.2% below its year-earlier level. Non-oil industry conditions across the larger economies in the region were mixed, while shipping security concerns and Gulf disruption continued to impact operations in the region and limited exports of feedstocks and chemicals.
  • ↓ South American Production Lower: South American chemical manufacturing declined 0.3% in July but remained 2.0% above its year-earlier level. Chemical output fell in Brazil and Argentina and increased in Chile. Brazil’s broader manufacturing sector moved into contraction as orders, production, and purchasing activity weakened. 

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

Additional Data