According to the American Chemistry Council, 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, ACC said. 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.