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Chemical Production Regional Index

U.S. Chemical Production Slips in May

“U.S. chemical production contracted slightly in June, with a 0.2% decrease from May,” said David Lan, ACC’s Director of Economics and Statistics. “June’s results mark a downward trend for the past five out of six months during the first half of the year. Production declined in most regions, except the Gulf Coast, where production increased.

“Global production, on the other hand, gained 0.1% in June 2025,” Lan added. Production increased in Asia, South America, and the Middle East but declined elsewhere.

Key findings:

  • U.S. Output Down: Chemical output in the U.S. decreased in June as trade-related uncertainty continued to weigh on production decisions. In the U.S., production varied by segment, but consumer products were the most significant contributors to this decline.
  • China Growth Steady: After a 0.3% increase, China’s output grew another 0.3% in June. Although tariff-related front-loading had subsided, exports continued to be robust as the June volume reached a new post-2022 high. While trade-related issues will continue to impact China’s export potential, some of the recently announced government initiatives on improving China’s social safety net, including a nationwide subsidy to boost birth rate, may spur domestic consumption going forward.
  • Europe Weak: Production declined 0.8% in June. Trade-related uncertainties continued to weigh down European production. Most major chemical-producing countries showed weakness this month, except Spain, where production was positive.
  • South America Rebound: South American chemical production grew 0.9% in June after a dip in May (-0.9%). Brazil continued to lead the region with a 7.0% year-over-year increase, but trade-related uncertainties may impact production decisions going forward.
     

Additional Data