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Chemical Production Regional Index

U.S. Chemical Manufacturing Dips Again Fueling Downward Trend

U.S. chemical production fell by 0.1% in August, marking the seventh decline in 8 months and fueling a downward trend, according to the American Chemistry Council (ACC).

“With production down in nearly every region except the Gulf Coast, the data reflect persistent headwinds from trade uncertainty despite some improvement in industrial demand.” said David Lan, ACC’s Director of Economics and Statistics.

“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 agriculture and autos,” Lan explained.

“Outside of the U.S., global chemical production accelerated in August, with gains in Asia and South America offsetting declines elsewhere,” Lan added.

Key findings:

  • ↓ U.S. Output Falls: Chemical production declined across most U.S. regions and segments. Notable exceptions were plastic resins (+2.6%) and inorganics (+0.7%), which posted modest gains.
  • ↑ China Accelerates: After three months of lackluster growth, output accelerated 1.3% in August. While some of this growth may have reflected stockpiling ahead of production curbs in advance of several events, a surge in electric vehicle exports may have contributed to the continued strength in chemical production. According to ACC’s “Chemistry and Automobiles” report, electric vehicles contain more chemistry than internal combustion engine (ICE) vehicles. 
  • ↓ Europe Contracts: Production dropped 0.3% in August, as high energy costs and trade uncertainty continued to drive restructuring across the sector. Germany’s output improved this month, but a slowing PMI growth suggests uncertain future performance. 
  • ↑ South America Stable: Production growth remained steady at around1.0% in August despite trade tension between the United States and Brazil. Production in Brazil gained 2.3% this month. 

Additional Data