According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) rose by 0.3 percent in July, following a revised 0.2 percent gain in June and flat growth over the March to May period.
Over the same period, chemical production by segment was mixed. There were gains in the output of organic chemicals, inorganic chemicals, synthetic rubber, plastic resins, agricultural chemicals and pharmaceuticals. These gains were offset, however, by declines in the production of industrial gases, consumer products, coatings, manufactured fibers, and other specialties.
Nearly all manufactured goods are produced using chemistry in some form or another. Thus, manufacturing activity is an important indicator for chemical production. On a three-month-moving average basis, manufacturing activity edged higher by 0.2 percent in July, following gains in May and June. Production expanded in several chemistry-intensive manufacturing industries, including motor vehicles, construction supplies, computers, plastic products, and furniture.
Compared to July 2014, U.S. chemical production was ahead by 3.7 percent on a year-over-year basis, a weakening trend. Chemical production remained ahead of year ago levels in all regions.
The chemistry industry is one of the largest industries in the United States, an $801 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. It is comparable to the U.S. industrial production index for chemicals published by the Federal Reserve. 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 July reflects production activity during May, June, and July.
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 an $801 billion enterprise and a key element of the nation’s economy. It is one of the nation’s largest exporters, representing fourteen 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.