The U.S. Chemical Production Regional Index (U.S. CPRI) rose 0.9 percent in October, following a 0.8 percent gain in September and a 1.0 percent increase in August, according to the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com). During October, chemical output expanded in all regions, with the largest gains occurring in the Northeast region, ACC said. The U.S. CPRI is measured on a three-month moving average (3MMA) basis.
In October, chemical production continued to improve in many segments including, chlor-alkali, other inorganic chemicals, organic chemicals, industrial gases, plastic resins, synthetic dyes and pigments, consumer products, adhesives, other specialty chemicals and fertilizers. Production trends eased in coatings, manufactured fibers, synthetic rubber and crop protection chemicals.
As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. The manufacturing recovery continued for a fourth consecutive month in October, with overall factory activity up by 0.8 percent (3MMA). The trend in production rose in nearly all key chemistry end-use industries, with the strongest gains seen in iron and steel, aerospace, foundries, tires, machinery and apparel.
Compared with October 2019, U.S. chemical production was off 4.9 percent on a year-over-year (Y/Y) basis, the seventeenth consecutive month of declines, but shows steady improvement over the past several months. Chemical production remained lower than a year ago in all regions, with the largest year-ago declines occurring in the Northeast, Mid-Atlantic, and West Coast regions.