The American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com) released chemistry and economic trends data last week. Among the findings were a 0.6% increase in the Global Chemical Production Regional Index (Global CPRI), and a 0.1% rise in the U.S. Chemical Production Regional Index (U.S. CPRI).
“Following a 0.9% increase in February, ACC’s Global CPRI rose again (0.6%) in March. Production in most regions increased, except South America, where output declined. Production in China grew, likely due to front-loading from U.S. importers. A similar phenomenon was also observed among European producers. All segments showed strength in March. Global chemical production growth was up 4.7% Y/Y,” ACC said.
Regarding the U.S., ACC said, “The U.S. CPRI saw a slight uptick in March, rising by 0.1% from February. Chemical production advanced in all regions, except the Gulf Coast. The U.S. CPRI was 6.6% higher than a year ago. The CPRI measures chemical production trends on a three-month moving average (3MMA) to smooth month-to-month volatility.”
In addition to the chemical production data, ACC also released its latest Economic Sentiment Index (ESI).
ACC’s Economic Sentiment Index showed that chemical manufacturers reported gains in Q1 despite weak demand in major markets and challenging economic conditions. Overall, chemical manufacturers believe their activity levels improved in Q1, but looking ahead, they are pessimistic about the next six months.
Key highlights include the following, according to ACC:
Early Year Upswing: New orders, production, and capacity utilization increased in Q1. However, expectations for the next six months turned negative.
Growing Pessimism: Chemical manufacturers noted worsening economic conditions in the U.S. and globally in Q1. Over the next six months, more than two-thirds expect conditions to worsen.
Inflated Costs: Production costs rose in Q1, with increases in raw materials, energy, transportation, and labor. Manufacturers expect these costs to continue rising.
Regulatory Relief: The regulatory burden in the U.S. has impacted manufacturers, deterring investments and innovation. With the new Administration, there is hope for regulatory relief. While the regulatory burden increased at a slower pace in Q1, manufacturers expect a slight increase over the next six months.
The ESI provides quarterly insights from chemical companies across the manufacturing sector and the U.S. economy. This latest report builds on eight quarters of data from Q1 2023 to Q1 2025. You can view the complete findings here.
For more data, click here.