US chemical production continues to grow as manufacturing leads way

The US Chemical Production Regional Index (CPRI) rose by 0.3% in July, following a revised 0.2% gain in June and flat growth over the March to May period, the American Chemistry Council (ACC) reported on Wednesday.

Over the same period, chemical production by segment was mixed. There were gains in the output of organic chemicals, inorganic chemicals, synthetic rubber, plastic resins, agricultural chemicals and pharmaceuticals. 

These gains were offset, however, by declines in the production of industrial gases, consumer products, coatings, manufactured fibers, and other specialties.

Nearly all manufactured goods are produced using chemistry in some form or another. Thus, manufacturing activity is an important indicator for chemical production, the ACC says. On a three-month-moving average basis, manufacturing activity edged higher by 0.2% in July, following gains in May and June.  

Production expanded in several chemistry-intensive manufacturing industries, including motor vehicles, construction supplies, computers, plastic products, and furniture.

Compared to July 2014, US chemical production was ahead by 3.7% on a year-over-year basis, a weakening trend. Chemical production remained ahead of year ago levels in all regions.