Production by the U.S. chemical industry fell by 0.3% in August, according to data contained in the latest Weekly Chemistry and Economic Report from the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com).
The drop left production at 85.7% of its average level from 2007, ACC noted. The lower production in August follows a similar decline in July and flat growth in June. The data indicate that organic and inorganic basic chemicals were up slightly, as was synthetic rubber, but those gains were offset by declines in plastic resins and artificial fibers, according to the ACC report.
Meanwhile, wholesale sales of chemicals rose by 0.5% in July, to $10.2 billion in sales. This follows a 1.3% gain in June, ACC noted. Chemical inventories were also up. Compared to a year ago, chemical sales at the wholesale level were up 4.8%, outpacing the 3.0% rise in inventories, ACC said.
Assessing the week’s economic reports for the wider economy, ACC said the data were mostly negative. “Higher prices for petroleum products and gasoline figured prominently in the price reports, which showed large gains in overall price levels driven by higher oil prices,” the report said. Hurricane Isaac, which caused large disruptions along the U.S. Gulf Coast, impacted industrial production negatively.