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Comment Business & Economics

U.S. chemical production expands in July, ACC says

By Scott Jenkins |

The U.S. Chemical Production Regional Index (U.S. CPRI) rose 1.1% in July following a 3.5% gain in June and a 5.5% rebound in May, according to the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com). During July, chemical output rose in all regions, reflecting continued demand for chemistry products, ACC said. The U.S. CPRI is measured as a three-month moving average (3MMA).

Chemical production was mixed in July (3MMA), with growth in the production of organic chemicals, fertilizers, adhesives, coatings, chlor-alkali, crop protection chemicals, synthetic rubber, other specialty chemicals, and miscellaneous inorganic chemicals. These gains were offset by weakness in 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 0.2% gain in June, manufacturing output continued to expand in July, by 0.7% (3MMA). The trend in manufacturing production was mixed, with gains in the output of motor vehicles and parts, aerospace, machinery, computers, semiconductors, iron and steel products, foundries, refining, oil and gas extraction, plastic products, rubber products, tires, printing, apparel and furniture.

Compared with July 2020, U.S. chemical production rose sharply in July, by 7.2%. Chemical production was higher than a year ago in all regions.

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