Jul 29, 2020

U.S. Chemical Production Moves Lower In June

Bizclik Editor
3 min

WASHINGTON, July 28, 2020 /PRNewswire/ -- According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI), fell by 1.1 percent in June on a three-month moving average (3MMA) basis following a 2.0 percent decline in May and a 3.0 percent decline in April. During June, chemical output fell across all regions, with the steepest declines in the Gulf Coast, Midwest and West Coast regions.

Deemed an essential industry by the U.S. Department of Homeland Security, chemical production eased on a 3MMA basis, with declines in segments except chlor-alkali, industrial gases, other basic inorganic chemicals, and consumer products, which were slightly higher. Within several major segments, production of some chemical materials increased, including supply chains tied to PPE and disinfection products.

As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. As restrictions continue to ease across much of the United States, factory activity rose. On a 3MMA basis, however, overall factory activity was down 2.3 percent, with declines persisting across most industry segments.

Compared with June 2019, U.S. chemical production was off by 6.8 percent, the thirteenth consecutive month of year-over-year declines. Chemical production was lower than a year ago in all regions, with the largest declines in the Northeast and West Coast regions.

U.S. Chemical Production Regional Index, Percentage Change

(Seasonally adjusted, 3-month moving average)

Jun 20/
May 20

Jun 20/
Jun 19

Key products

Gulf Coast



petrochemicals, inorganics, plastics resins, and synthetic rubber




agricultural chemicals, plastics, and paints

Ohio Valley



organic chemicals, plastics and synthetic materials, and specialty chemicals




consumer products




inorganic chemicals, fibers, and consumer products




consumer products and specialty chemicals

West Coast



basic chemicals, agricultural chemicals, and consumer products

     U.S. Total



The chemistry industry is one of the largest industries in the United States, a $565 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 June reflects production activity during April, May and June.

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 $565 billion enterprise and a key element of the nation's economy. It is one of the nation's largest exporters, accounting for ten percent of all U.S. goods 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

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