According to the American Chemistry Council (ACC), following an upwardly revised 0.5 percent gain in May, the U.S. Chemical Production Regional Index (U.S. CPRI) continued to expand, rising by 0.3 percent in June. Chemical output was higher in all regions.
Manufacturing production grew during June, and on a three-month moving average (3MMA), output of the nation’s overall manufacturing sector was 0.3 percent higher. Within the manufacturing sector, output in many key chemistry end-use markets expanded, including appliances, motor vehicles, aerospace, construction supplies, machinery, fabricated metal products, computers, semiconductors, plastic products, rubber products, plywood, printing, paper, and furniture.
Also measured on a 3MMA basis, overall chemical production was again mixed. There were gains in the output of chlor-alkali and other inorganic chemicals, plastic resins, synthetic rubber, synthetic dyes and pigments, industrial gases, consumer products, organic chemicals and pharmaceuticals. These gains were partially offset by declines in the production of fertilizers, pesticides, synthetic fibers, coatings, and adhesives.
Compared to June 2013, total chemical production in all regions was ahead by 1.3 percent on a year-over-year basis, following a revised 1.4 percent gain in May. Chemical production was up from a year ago in all regions. Comparing the first half of 2014 to that in 2013, chemical production was up 0.9 percent nationally, with all seven regions posting gains.
The chemistry industry is one of the largest industries in the United States, an $812 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. To smooth month-to-month fluctuations, the U.S. CPRI is measured using a three-month moving average (3MMA). Thus, the reading in June reflects production activity during April, May, and June.
Following a revised 0.9 percent gain in May, chemical production in the Gulf Coast region continued to accelerate, rising by 0.5 percent in June. June production was ahead by 1.2 percent from a year ago, and up by 0.2 percent on a year-to-date basis. The Gulf Coast region is dominated by the production of key building block materials, such as petrochemicals, inorganics, and synthetic materials, advantaged by shale gas development.
In the Midwest region, which is influenced by production of agricultural chemicals, plastics, paints, and other chemical products, chemical production increased 0.2 percent in June, following a revised 0.4 percent gain in May. Compared to June 2013, Midwest chemical production was up by 1.1 percent, and up 1.0 percent on a year-to-date basis.
In the Ohio Valley region, largely influenced by production of basic chemicals, plastics and synthetic rubber, coatings, and consumer products, chemical production rose by 0.2 percent in June on the heels of a revised 0.6 percent gain in May. Compared to June 2013, production in the region was up by 1.8 percent, and was also up 1.7 percent on a year-to-date basis.
In the Mid-Atlantic region, where pharmaceutical manufacturing is prominent, chemical production was higher by 0.2 percent in June, following a revised 0.3 percent gain in May. Compared to June 2013, Mid-Atlantic chemical production was up 1.0 percent on a year-over-year basis and up 0.9 percent on a year-to-date basis.
In the Southeast region, which is influenced heavily by production of basic chemicals, fibers, agricultural and other chemical products, chemical production edged higher by 0.2 percent in June, following a revised 0.4 percent gain in May. Compared to June 2013, Southeast region chemical production was up 1.3 percent on a year-over-year basis and was up 1.2 percent on a year-to-date basis.
In the Northeast region, which is influenced by pharmaceutical manufacturing and other specialty chemical manufacturing, chemical production rose by 0.2 percent during June, following a revised 0.4 percent gain in May. Compared to June 2013, Northeast region chemical production was up by 1.4 percent on a year-over-year basis and up 1.2 percent on a year-to-date basis.
In the West Coast region, chemical production rose by 0.1 percent in June, following a revised 0.1 percent decline in May. Chemical production in the West Coast region was up 1.0 percent from last year and was up 1.2 percent on a year-to-date basis.
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 $812 billion enterprise and a key element of the nation’s economy. It is one of the nation’s largest exporters, accounting for twelve percent of all 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.