U.S. Chemical Production Edged Lower In February
WASHINGTON, March 26, 2020 /PRNewswire/ -- According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) edged lower by 0.2 percent in February following a 0.1 percent gain in January and a 0.2 percent decline in December. During February, chemical output declined across all regions except the Gulf Coast.
Chemical production was mixed over the three-month period. There were gains in the three-month moving average (3MMA) output trend of organic chemicals, plastic resins, chlor-alkali, other inorganic chemicals, other specialty chemicals, synthetic rubber, and manufactured fibers. These gains were offset by declines in the output of industrial gases, coatings, adhesives, fertilizers, synthetic dyes and pigments, crop protection chemicals, and consumer products.
Nearly all manufactured goods are produced using chemistry in some form. Thus, manufacturing activity is an important indicator for chemical production. On a 3MMA basis, manufacturing activity was flat in February, following gains in December and January. Output expanded in several chemistry-intensive manufacturing industries, including food & beverages, appliances, construction supplies, fabricated metal products, computers & electronics, semiconductors, refining, foundries, oil & gas extraction, plastic products, rubber products, paper, structural panels, printing, and furniture.
Compared with February 2019, U.S. chemical production was off by 1.8 percent on a year-over-year basis, the ninth consecutive month of Y/Y declines. Chemical production was lower than a year ago in all regions, with the largest year ago declines in the Mid-Atlantic, West Coast, and Northeast regions.
U.S. Chemical Production Regional Index, Percentage Change
(Seasonally adjusted, 3-month moving average)
petrochemicals, inorganics, plastics resins, and synthetic rubber
agricultural chemicals, plastics, and paints
organic chemicals, plastics and synthetic materials, and specialty chemicals
inorganic chemicals, fibers, and consumer products
consumer products and specialty chemicals
basic chemicals, agricultural chemicals, and consumer products
The chemistry industry is one of the largest industries in the United States, a $553 billion enterprise. The manufacturing sector is the largest consumer of chemical products, and 96 percent of manufactured goods are touched by chemistry. The U.S. CPRI was developed to track chemical production activity in seven regions of the United States. The U.S. CPRI is based on information from the Federal Reserve, and as such, includes monthly revisions as published by the Federal Reserve. To smooth month-to-month fluctuations, the U.S. CPRI is measured using a three-month moving average. Thus, the reading in February reflects production activity during December, January, and February.
The American Chemistry Council (ACC) represents the leading companies engaged in the business of chemistry. ACC members apply the science of chemistry to make innovative products and services that make people's lives better, healthier and safer. ACC is committed to improved environmental, health and safety performance through Responsible Care, common sense advocacy designed to address major public policy issues, and health and environmental research and product testing. The business of chemistry is a $553 billion enterprise and a key element of the nation's economy. It is one of the nation's largest exporters, representing ten cents out of every dollar in U.S. exports. Chemistry companies are among the largest investors in research and development. Safety and security have always been primary concerns of ACC members, and they have intensified their efforts, working closely with government agencies to improve security and to defend against any threat to the nation's critical infrastructure.
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SOURCE American Chemistry Council