U.S. Chemical Production Expanded In September

WASHINGTON, Oct. 22, 2020 /PRNewswire/ -- According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) rose 0.8 percent in September following a 0.8 percent gain in August and a 1.0 percent increase in July. During September, chemical output expanded in all regions, with the largest gains occurring in the Northeast. The U.S. CPRI is measured on a three-month moving average (3MMA) basis.

In September, chemical production continued to improve in many segments, including, chlor-alkali, organic chemicals, industrial gases, synthetic dyes and pigments, consumer products, synthetic rubber, manufactured fibers, other specialty chemicals, and fertilizers. Production eased in plastic resins, coatings, adhesives, 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 recovery continued at a slower pace into September, with overall factory activity up 1.6 percent on a 3MMA basis. Production rose in nearly all key chemistry end-use industries that ACC tracks, with the strongest gains occurring in motor vehicles, aerospace, iron and steel, tires, and structural panels.

Compared with September 2019, U.S. chemical production was off 4.3 percent on a year-over-year (Y/Y) basis, the sixteenth consecutive month of Y/Y declines, but an 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.

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 includes monthly revisions as published by the Federal Reserve. In order to smooth month-to-month fluctuations, the U.S. CPRI is measured using a three-month moving average. The reading in September reflects production activity during July, August and September.

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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 $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.

SOURCE American Chemistry Council