Monthly US chemical production edges higher

The US Chemical Production Regional Index (US CPRI) rose by 0.2% in October, following flat growth in September and a 0.1% gain in August, according to new figures from the American Chemistry Council (ACC) trade group.

All regions posted growth with the exception of the Gulf Coast region.

Over the same period, chemical production by segment was mixed. There were gains in the three-month moving average output trend of consumer products, pharmaceuticals, and inorganics (chlor-alkali, in partcular), synthetic rubber, and other specialties. At the same time, there were declines in the production of organic chemicals, adhesives, fertilizers, coatings, pesticides, plastic resins, and manufactured fibers.

Nearly all manufactured goods are produced using chemistry in some form or another, the ACC explains. Thus, manufacturing activity is an important indicator for chemical production. 

On a three-month-moving average basis, manufacturing activity edged higher by 0.1% in October, following 0.2% and 0.3% gains in August and September, respectively.

Production expanded in several chemistry-intensive manufacturing industries, including food and beverages; construction supplies; machinery; computers and electronics; semiconductors; plastics and rubber products; paper; structural panels; printing; textile products; and furniture.

Compared to October 2014, US chemical production was ahead by 2.4% on a year-over-year basis, a weakening trend. Chemical production remained ahead of year ago levels in all regions.