US chemical production rising in all regions - ACC
The US chemical production regional index (CPRI) rose by 0.5% in February, following a revised 0.5% gain in January, according to new figures from the American Chemistry Council (ACC) trade group.
Following several months of mixed results, chemical production rose in all seven regions during February.
Using a three month moving average, comparable to the US CPRI, output of the nation’s overall manufacturing sector rose by 1.0% in February, following a 0.8% gain in January.
Within the manufacturing sector, output in several key chemistry end-use markets increased, including motor vehicles, construction supplies, computers, plastic products, paper, structural panels, machinery, printing, apparel, and furniture.
Also measured on a three month moving average basis, there were gains in production of industrial gases, inorganic chemicals, plastic resins, synthetic rubber, pesticides, adhesives, coatings, other specialties, and consumer products, the ACC said.
Declines occurred in the production of organic chemicals, fertilizers, and pharmaceuticals.
Compared to February 2011, total chemical production in all regions was up 1.5% and remained ahead year-over-year in all regions except the West Coast regions which were off from a year ago.
Year-ago comparisons stabilized or improved in all regions except the Gulf Coast, which continued to weaken.
The chemistry industry is one of the largest industries in the US, a $720 billion enterprise according to the ACC.
The manufacturing sector is the largest consumer of chemical products, and 96% of manufactured goods are touched by chemistry.
The US CPRI was developed by Moore Economics to track chemical production activity in seven regions of the United States. It is comparable to the US industrial production index for chemicals published by the Federal Reserve.
The CPRI is based on information from the Federal Reserve. To smooth month-to-month fluctuations, the CPRI is measured using a three-month moving average (3MMA). Thus, the reading in February reflects production activity during December, January, and February.
For more details on the index including a regional breakdown, click here.
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