U.S. chemical production fell by 0.4% in July, continuing a downward trend seen in five of the past seven months, according to the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com). “The industry is losing momentum,” said David Lan, ACC’s Director of Economics and Statistics. “With production down in nearly every region except the Gulf Coast, the data signal persistent headwinds from weak industrial demand and trade uncertainty.”
Lan added that global chemical production also stalled in July, with modest gains in Asia and South America barely offsetting declines elsewhere.
Key findings from the recent ACC data include the following:
↓ U.S. Output Falls: Chemical production declined across most U.S. regions and segments. Notable exceptions were plastic resins (+1.8%) and bulk petrochemicals (+0.5%), which posted modest gains.
↑ China Holds Steady: Output rose 0.3% for the second straight month, supported by strong export demand. However, some of this growth may reflect stockpiling ahead of upcoming national events that could trigger temporary production curbs.
↓ Europe Contracts: Production dropped 0.9%, as high energy costs and trade uncertainty continued to drive restructuring across the sector.
↑ South America Slows: Growth cooled to 0.4% in July, down from 1.6% in June. Argentina was the only major economy in the region to post a decline.