U.S. Chemical Production Lower In March

WASHINGTON, April 24, 2019 /PRNewswire/ -- According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) fell by 0.4 percent in March, following a revised 0.3 percent decline in February and a 0.1 percent gain in January. During March, chemical output was higher in the Northeast and West Coast regions, but fell in the Gulf Coast, Midwest, Ohio Valley and Southeast regions. Output in the Mid-Atlantic region was flat.

Chemical production was mixed over the three-month period. There were gains in the production three-month moving average (3MMA) output trend in adhesives, coatings, other specialty chemicals, synthetic rubber, fertilizers, crop protection chemicals, consumer products and chlor-alkali. These increases were offset by declines in the output of plastic resins, organic chemicals, industrial gases, manufactured fibers and other inorganic chemicals.

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 slipped by 0.3 percent in March, the second straight decline since May 2018. Output expanded in several chemistry-intensive manufacturing industries, including food and beverages, aerospace, computers and electronics, semiconductors, and oil and gas extraction.

Compared with March 2018, U.S. chemical production was up by 3.1 percent on a year-over-year (Y/Y) basis, a weaker comparison than in February. Chemical production was higher than a year ago in all regions, with the largest gains in the Gulf Coast region, reflecting gains in the output at new shale-advantaged chemical plants.

The chemistry industry is one of the largest industries in the United States, a $526 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 March reflects production activity during January, February and March.

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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 $526 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.

SOURCE American Chemistry Council