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Comment Business & Economics

U.S. chemical production fell slightly in August, ACC says

By Scott Jenkins |

Reflecting hurricane disruptions and supply chain challenges, the U.S. Chemical Production Regional Index (U.S. CPRI) fell 0.3% in August following a 1.1% gain in July and a 3.4% gain in June, according to the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com). During August, chemical output fell sharply in the Gulf Coast region and eased in other regions except the Northeast, ACC said. The U.S. CPRI is measured as a three-month moving average (3MMA).

Chemical production was mixed in August, with an improving trend in the production of synthetic rubber, manufactured fibers, other specialty chemicals, fertilizers, coatings and consumer products. These gains were offset by weakness in organic chemicals, plastic re.sins, miscellaneous inorganic chemicals, crop protection chemicals, and adhesives.

As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. Following a 0.8% gain in July, manufacturing output expanded by 0.5% in August (3MMA). The trend in manufacturing production was mixed, with gains in the output of motor vehicles and parts, aerospace, construction supplies, machinery, computers, semiconductors, iron and steel products, foundries, plastic products, printing, textile mill products, apparel and furniture.

Compared with August 2020, U.S. chemical production rose 5.9% in August. Chemical production was higher than a year ago in all regions.

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