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Comment Processing & Handling

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

By Scott Jenkins |

According to the American Chemistry Council (ACC; Washington, D.C.; www.americanchemstry.com), the U.S. Chemical Production Regional Index (U.S. CPRI) fell by 2.0 percent in May following a 2.7 percent decline in April and a 0.9 percent decline in March. During May, chemical output declined across all regions, with the steepest drops in the Midwest and West Coast regions. The lower level of activity is directly related to supply chain disruptions and continued restrictions across much of the country during May. 

Designated an essential industry by the U.S. Department of Homeland Security, chemical production continued to ease on a three- month moving average (3MMA) basis, with declines in all segments except plastic resins. Within several major segments, production of some chemical materials increased. These included 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 eased in many parts of the U.S., many factories reopened. Overall manufacturing activity was 6.2 percent lower on a 3MMA basis, with declines – in some cases quite steep – across all industry sectors.

Compared with May 2019, U.S. chemical production was off by 6.0 percent, the twelfth consecutive month of year-over-year declines. Chemical production was lower in all regions, with the largest year-ago declines in the West Coast, Ohio Valley and Midwest regions.

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