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Chemical Production Regional Index

U.S. Chemical Manufacturing Started the Year Lower

U.S. chemical production started the year with additional weakness, falling 0.4% in January 2026 after a 1.0% drop in December, according to new data from the American Chemistry Council (ACC).

“The U.S. chemical industry started the year slightly weaker,” said David Lan, ACC’s Director of Economics and Statistics. “Nevertheless, recent improvements in the Manufacturing Purchasing Manager’s Index PMI, together with more optimistic readings from ACC’s latest Manufacturer’s Economic Sentiment Index (ESI), indicate the potential for a gradual recovery in the months ahead.”

“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 momentum as increased production in the Asia-Pacific region, Europe and Africa and Middle east countries offset declines elsewhere” Lan added.

Key findings:

  • ↓ U.S. Output Drops: U.S. chemical production declined across all regions and nearly every major segment. Agriculture was the sole segment to record an increase, rising by 1.1%. Overall output remained 1.7% lower than during the same period last year.
  • ↑ China Steady: Following a 1.4% increase in December 2025, China’s chemical output began 2026 with a further expansion of 0.4%. Growth continued to be supported primarily by strong export demand for electric vehicles, despite weak domestic consumption and ongoing challenges in the property market. Compared with last year, chemical output rose 6.8% this January.
  • ↑ Europe Stabilizes: European chemical production began the year on a positive note, rising 0.4%. Although elevated energy costs, persistent trade uncertainty, and increased import competition continue to constrain output, recent improvements in manufacturing PMIs in France and Germany offer signs of stabilization. On a year‑over‑year basis, production edged up 0.1%.
  • ↓ South America Varies: South American chemical production began the year with a 0.3% decline. Output increased in Argentina but fell in both Brazil and Chile. On a year‑over‑year basis, South American production was down 2.6%.

Additional Data