US chemical production growth stalls: ACC
5/20/2016 10:14:48 PM
The US Chemical Production Regional Index (CPRI) was flat in April, following a 0.4% gain in March, and a 0.1% decline in February, as measured on a three-month moving average (3MMA), according to new data released Friday by the American Chemistry Council (ACC).
In April, the Gulf Coast was the only region to post a small gain. Output declined slightly in the Northeast, and all other regions were flat.
Also measured on a 3MMA basis, chemical production was mixed. There were gains in the production output trend of fertilizers, dyes and pigments, chlor-alkali, other inorganic chemicals, industrial gases, plastic resins, pharmaceuticals and consumer products.
These gains were offset by declines in the output trend in organic chemicals, adhesives, coatings, other specialty chemicals, synthetic rubber, and manufactured fibers.
Nearly all manufactured goods are produced using chemistry in some form or another, the ACC says. Thus, manufacturing activity is an important indicator for chemical production.
On a 3MMA basis, manufacturing activity was flat for a second month in April after edging higher by 0.1% in February. Production expanded in several chemistry-intensive manufacturing industries, including motor vehicles, machinery, electronics, petroleum refining, iron and steel, and plastic products.
Compared to April 2015, US chemical production was ahead by 1.1% on a year-over-year basis, a moderating trend. Chemical production remained ahead of year ago levels in all regions, except the West Coast where production was flat relative to a year ago.
The chemistry industry is one of the largest industries in the US, an $801 billion enterprise. The manufacturing sector is the largest consumer of chemical products, and 96% of manufactured goods are touched by chemistry, the ACC says.
The US CPRI was developed to track chemical production activity in seven regions. The CPRI is based on information from the Federal Reserve, and as such, includes monthly revisions as published by the Federal Reserve. To smooth month-to-month fluctuations, the CPRI is measured using a three-month moving average. Thus, the reading in April reflects production activity during February, March, and April.
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