By: ICN Bureau
Last updated : September 09, 2025 12:49 pm
Most segments weakened, except for agricultural chemicals and specialty chemicals. Year-over-year production rose by 3.5%.
ACC’s Global Chemical Production Regional Index (Global CPRI) stalled (0.0%) in July after a modest 0.1% gain in June. Production increased in Asia and South America but declined elsewhere. Output in the Asia-Pacific region advanced as China’s robust export performance and stockpiling ahead of upcoming national events drove production in the country. European output remained weak as trade-related uncertainties continued to weigh down European orders. Output in North America decreased as U.S. production continued to decline. Growth in South American production cooled. Most segments weakened, except for agricultural chemicals and specialty chemicals. Year-over-year production rose by 3.5%.
The U.S. CPRI edged down by 0.4% in July. This index measures chemical production trends based on a three-month moving average to smooth out month-to-month volatility. Production declined in most regions, except the Gulf Coast, where production increased. Overall, the U.S. CPRI was 0.9% higher than it was a year ago.
Chemical shipments rose to $57.7 billion in July, up 0.6% from June. Increases in agricultural chemicals and other chemicals were partly offset by declines in coatings & adhesives. Chemical inventories were flat, with all the categories remaining virtually unchanged. Compared to a year ago, chemical shipments were up 1.7% Y/Y (same increase as in June) while inventories were up 1.2%. The inventories-to-shipments ratio for chemicals dipped to 1.24 from 1.25 in June.
According to data released by the Association of American Railroads, chemical railcar loadings were up to 34,960 for the week ending August 30th. Loadings were up 1.7% Y/Y (13-week MA), up 1.8% YTD/YTD and have been on the rise for eight of the last 13 weeks.
Chemical construction spending fell by 0.8% in July to a $43.3 billion annual pace. Spending was up 11.4% Y/Y, however. As a share of overall manufacturing construction, chemicals accounted for 19.4%.
Chemical industry employment fell in July, down 0.2% to 548,600 (up 0.2% Y/Y). Employment in plastic resin manufacturing rose, however, up by 0.5% to 62,600, a level 2.6% higher than last July. (Note that data at the detailed industry level are lagged one month behind the headline jobs report.)
In August, combined chemical and pharmaceutical jobs rose by 2,400 to 906,700, a level up 0.8% Y/Y. There were gains in both the number of supervisory & non-production and production workers. Average hourly earnings for production workers rose 2.5% Y/Y to $31.65. The average workweek for production workers moved higher by 12 minutes to 42.2 hours in August. With the gain in both production workers and the average workweek, the implied labor input into the chemical industry rose in August, in contrast to the ISM PMI report which reported that the chemical industry contracted.