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U.S. chemical production rose 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) rose by 0.2 percent in June, following a 0.4 percent gain in May and a 0.3 percent gain in April. During June, chemical output was up in the Gulf Coast, Midwest, Ohio Valley and Southeast regions. These gains were offset by lower production in the Mid-Atlantic, Northeast and West Coast regions, ACC says.

Chemical production was mixed over the three-month period. There were gains in the production three-month moving average (3MMA) output trend in chlor-alkali, plastic resins, organic chemicals, synthetic dyes and pigments, organic chemicals, inorganic chemicals, industrial gases, adhesives, manufactured fibers, and other specialty chemicals. These gains were offset by declines in the output of pesticides, synthetic rubber, coatings, fertilizers, and consumer products.

Nearly all manufactured goods are produced using chemistry in some form. Thus, manufacturing activity is an important indicator for chemical production. On a 3MMA basis, manufacturing activity was flat in June, following four months of declines. Output expanded in several chemistry-intensive manufacturing industries, including motor vehicles and parts, construction supplies, computers, semiconductors, petroleum refining, plastic products, oil and gas extraction, paper, structural panels, apparel and furniture.

Compared with June 2018, U.S. chemical production was up 1.5 percent on a year-over-year basis, a weaker comparison than in May. Chemical production was higher than a year ago in all regions, with the largest gains in the Gulf Coast and Northeast regions.

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