U.S. Chemical Production Marks Fifth Month Of Growth In November

WASHINGTON, Dec. 22, 2020 /PRNewswire/ — The U.S. Chemical Production Regional Index (U.S. CPRI) rose 0.4% in November following a 1.1% gain in October and a 0.6% gain in September, according to the American Chemistry Council (ACC). During November, chemical output expanded in all regions, with the largest gains occurring in the Gulf Coast and Midwest regions. The U.S. CPRI is measured on a three-month moving average (3MMA) basis.

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WASHINGTON, Dec. 22, 2020 /PRNewswire/ — The U.S. Chemical Production Regional Index (U.S. CPRI) rose 0.4% in November following a 1.1% gain in October and a 0.6% gain in September, according to the American Chemistry Council (ACC). During November, chemical output expanded in all regions, with the largest gains occurring in the Gulf Coast and Midwest regions. The U.S. CPRI is measured on a three-month moving average (3MMA) basis.

In November, chemical production continued to improve in many segments, including fertilizers, synthetic dyes and pigments, chlor-alkali, other inorganic chemicals, and organic chemicals. Production trends eased in coatings, manufactured fibers, consumer products, adhesives, synthetic rubber and crop protection chemicals.

As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. The manufacturing recovery continued for a fifth straight month in November, with overall factory activity up 0.7% (3MMA). The trend in production rose in nearly all key chemistry end-use industries, with the strongest gains seen in iron and steel, aerospace, rubber products, paper, structural panels, and printing.

Compared with November 2019, U.S. chemical production was off 4.2% on a year-over-year basis, the eighteenth consecutive month of Y/Y declines, but shows continued improvement over the past several months. Chemical production remained lower than a year ago in all regions, with the largest year-ago declines occurring in the Northeast, Mid-Atlantic, and West Coast regions.

U.S. Chemical Production Regional Index, Percentage Change

(Seasonally adjusted, 3-month moving average)

Nov 20/

Oct 20

Nov 20/

Nov 19

Key products

Gulf Coast

1.0%

-2.6%

petrochemicals, inorganics, plastics resins, and synthetic rubber

Midwest

0.4%

-5.2%

agricultural chemicals, plastics, and paints

Ohio Valley

0.3%

-5.4%

organic chemicals, plastics and synthetic materials, and specialty chemicals

Mid-Atlantic

0.1%

-6.0%

consumer products

Southeast

0.3%

-5.2%

inorganic chemicals, fibers, and consumer products

Northeast

0.1%

-5.9%

consumer products and specialty chemicals

West Coast

0.1%

-6.3%

basic chemicals, agricultural chemicals, and consumer products

     U.S. Total

0.4%

-4.2%

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% of manufactured goods are directly 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 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. The reading in November reflects production activity during September, October and November.

http://www.americanchemistry.com/newsroom
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, 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