U.S. Chemical Production Edges Higher To Start The Year
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ccording to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) edged higher by 0.1 percent in January following a 0.1 percent decline in December and a 0.2 percent decline in November. During January, 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, industrial gases, synthetic dyes and pigments, other inorganic chemicals, synthetic rubber, manufactured fibers, and fertilizers. These gains were offset by declines in the output of coatings, adhesives, other specialty chemicals, 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 rose by 0.3 percent in January, a second consecutive increase following three months of declines. Output expanded in several chemistry-intensive manufacturing industries, including food and beverages, appliances, motor vehicles, construction supplies, computers and electronics, semiconductors, refining, iron and steel products, foundries, oil and gas extraction, plastic products, rubber products, paper, printing, and furniture.
Compared with January 2019, U.S. chemical production was off by 1.6 percent on a year-over-year (Y/Y) basis, the eighth consecutive month of Y/Y declines. Chemical production was lower than a year ago in all regions, with the largest declines in the Mid-Atlantic, Northeast, and Ohio Valley regions.
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 January reflects production activity during November, December, and January.
✔️ U.S. Chemical Production Edges Higher To Start The Year
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