WASHINGTON (September 27, 2021; ACC news release) — Reflecting hurricane disruptions and supply chain challenges, the U.S. Chemical Production Regional Index (U.S. CPRI) fell 0.3% in August following a 1.1% gain in July and a 3.4% gain in June, according to the American Chemistry Council (ACC). During August, chemical output fell sharply in the Gulf Coast region and eased in other regions except the Northeast. The U.S. CPRI is measured as a three-month moving average (3MMA).
Chemical production was mixed in August, with an improving trend in the production of synthetic rubber, manufactured fibers, other specialty chemicals, fertilizers, coatings and consumer products. These gains were offset by weakness in organic chemicals, plastic resins, miscellaneous inorganic chemicals, crop protection chemicals and adhesives.
As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. Following a 0.8% gain in July, manufacturing output expanded by 0.5% in August (3MMA). The trend in manufacturing production was mixed, with gains in the output of motor vehicles and parts, aerospace, construction supplies, machinery, computers, semiconductors, iron and steel products, foundries, plastic products, printing, textile mill products, apparel and furniture.
Compared with August 2020, U.S. chemical production rose 5.9% in August. 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% 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 August reflects production activity during June, July, and August.
