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Comment Business & Economics

U.S. chemical production fell in June, ACC says

By Scott Jenkins |

According to the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com), the U.S. Chemical Production Regional Index (U.S. CPRI), fell by 1.1 percent in June on a three-month moving average (3MMA) basis following a 2.0 percent decline in May and a 3.0 percent decline in April. During June, chemical output fell across all regions, with the steepest declines in the Gulf Coast, Midwest and West Coast regions.

Deemed an essential industry by the U.S. Department of Homeland Security, chemical production eased on a 3MMA basis, with declines in segments except chlor-alkali, industrial gases, other basic inorganic chemicals, and consumer products, which were slightly higher. Within several major segments, production of some chemical materials increased, including supply chains tied to PPE and disinfection products.

As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. As restrictions continue to ease across much of the United States, factory activity rose. On a 3MMA basis, however, overall factory activity was down 2.3 percent, with declines persisting across most industry segments.

Compared with June 2019, U.S. chemical production was off by 6.8 percent, the thirteenth consecutive month of year-over-year declines. Chemical production was lower than a year ago in all regions, with the largest declines in the Northeast and West Coast regions.

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