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Comment Business & Economics

U.S. chemical production expanded in January, ACC says

By Scott Jenkins |

The U.S. Chemical Production Regional Index (U.S. CPRI) expanded by 0.4% in January following a 1.4% gain in December and a 0.3% gain in November, according to data from the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com). Chemical output rose in all regions, with the largest gains occurring in the Midwest and Gulf Coast regions, ACC said. The U.S. CPRI is measured as a three-month moving average (3MMA).

Chemical production was mixed in January (3MMA), with an improving trend in the production of coatings, adhesives, crop protection, industrial gases, organic chemicals, and basic inorganic chemicals. These gains were offset by weakness in the output of synthetic rubber, manufactured fibers, plastic resins and other specialty chemicals. Output of consumer products was flat.

As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. Manufacturing output expanded for a seventh consecutive month in January, by 0.3% (3MMA). The 3MMA trend in manufacturing production was mixed, with gains in the output of food and beverages, appliances, motor vehicles, aerospace, batteries, construction supplies, fabricated metal products, machinery, computers and electronics, semiconductors, foundries, containers, oil and gas extraction, plastic products, paper, and structural panels.

Compared with January 2021, U.S. chemical production was ahead by 1.3%, a slowing comparison from last month. Chemical production continued to be higher than a year ago in all regions except the Gulf Coast.

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