WASHINGTON, July 28, 2021 /PRNewswire/ -- The U.S. Chemical Production Regional Index (U.S. CPRI) rose 3.1% in June following a 4.6% decline in May and a 1.2% decline in April, according to the American Chemistry Council (ACC). During June, chemical output rose in all regions, reflecting both solid demand for chemistry products and capacity restoration after the winter storms along the Gulf Coast. The U.S. CPRI is measured as a three-month moving average (3MMA).
Chemical production was mixed in June, with growth in the production of organic chemicals, plastic resins, fertilizers, adhesives, coatings, chlor-alkali, crop protection chemicals, other specialty chemicals, and miscellaneous inorganic chemicals. These gains were offset by continued weakness in synthetic rubber, synthetic dyes and pigments, manufactured fibers, and consumer products.
As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. Following a 1.2% gain in May, manufacturing output expanded by 0.2% in June (3MMA). The trend in manufacturing production was mixed, with gains in the output of machinery, computers and electronics, semiconductors, oil and gas extraction, refining, iron and steel products, foundries, rubber products, tires, printing, textile products, apparel, and furniture.
Compared with June 2020, U.S. chemical production rose 4.2%. Chemical production was higher than a year ago in all regions.
The chemistry industry is one of the largest industries in the United States, a $486 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 as such, includes monthly revisions as published by the Federal Reserve. The U.S. CPRI includes the most recent Federal Reserve benchmark revision released on May 28, 2021.
To smooth month-to-month fluctuations, the U.S. CPRI is measured using a three-month moving average. The reading in June reflects production activity during April, May, and June.
