US chemical production expanded in September

Oct. 22, 2020
During September, chemical output expanded in all regions, with the largest gains occurring in the Northeast, according to the American Chemistry Council.

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.

Sponsored Recommendations

Choosing The Right Partner for CHIPS Act Investments

As the U.S. looks to invest in the semiconductor research and production using CHIPS Act 2022 funding, it's important to choose the right partner.

EMWD Uses Technology to Meet Sustainability Goals

Eastern Municipal Water District pilots artificial intelligence-enabled control and machine learning to help save energy, reduce costs, and improve quality.

Protein Processing Solutions: Automation & Control

For protein processors looking to address industry challenges, improve efficiency, and stay ahead in a competitive market, Rockwell Automation offers tailored automation, control...

Automotive Manufacturing Innovation: Smart Solutions for a Connected Future

Rockwell Automation provides automation and control systems tailored for the automotive and tire industries, supporting electric vehicle production, tire production, battery production...

Request More Information

By clicking above, I acknowledge and agree to Endeavor Business Media’s Terms of Service and to Endeavor Business Media's use of my contact information to communicate with me about offerings by Endeavor, its brands, affiliates and/or third-party partners, consistent with Endeavor's Privacy Policy. In addition, I understand that my personal information will be shared with any sponsor(s) of the resource, so they can contact me directly about their products or services. Please refer to the privacy policies of such sponsor(s) for more details on how your information will be used by them. You may unsubscribe at any time.