USA: Market Scenario U.S. Chemical Production Increases in October but Growth Slows Down: ACC
The U.S. Chemical Production Regional Index increased by 0.2 per cent in October however chemical output increased at a slower pace throughout the country. On a production 3MMA basis, there were gains in the output trend in plastic resins, chlor-alkali, pesticides, organic chemicals, consumer products, and so on.
Washington/USA – According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) edged higher by 0.2 per cent in October following gains of 0.5 per cent in September and 0.2 per cent in August. During October, chemical output increased at a slower pace across all regions.
Chemical production was mixed over the three-month period. There were gains in the production three-month moving average (3MMA) output trend in plastic resins, chlor-alkali, pesticides, organic chemicals, consumer products, adhesives, coatings and other specialty chemicals. These gains were offset by declines in the output of synthetic rubber, miscellaneous inorganic chemicals, synthetic dyes and pigments, industrial gases fertilisers and manufactured fibers.
Nearly all manufactured goods are produced using chemistry in some form. Thus, manufacturing activity is an important indicator for chemical production. On a 3MMA basis, manufacturing activity edged lower in October, off by 0.2 per cent. Output expanded in several chemistry-intensive manufacturing industries, including food and beverages, aerospace, computers, semiconductors, iron and steel products, foundries, oil and gas extraction, rubber products, paper, structural panels, and printing.
Compared with October 2018, U.S. chemical production was off by 0.6 per cent on a year-over-year basis. Chemical production was lower than a year ago in the Gulf Coast and Midwest, but up slightly in other regions.
The chemistry industry is one of the largest industries in the United States, a 553 billion dollar enterprise. The manufacturing sector is the largest consumer of chemical products, and 96 per cent of manufactured goods are touched by chemistry. The U.S. CPRI was developed to track chemical production activity in seven regions of the United States. The U.S. 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 U.S. CPRI is measured using a three-month moving average. Thus, the reading in October reflects production activity during August, September, and October.