WASHINGTON (April 21, 2017) – According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) slipped by 0.2 percent in March, following a downwardly revised 0.3 percent decline in February, and a 0.2 percent gain in January, as measured on a three-month moving average (3MMA) basis. During March, growth in the Gulf Coast and Ohio Valley regions partially offset production declines in the Midwest, Mid-Atlantic, Southeast, Northeast and West Coast regions.
Also measured on a 3MMA basis, chemical production was mixed. There were gains in the production output trend of coatings, adhesives, fertilizers, pesticides, plastic resins, organic chemicals, synthetic rubber, and other specialties. These gains were offset by declines in the output trend in pharmaceuticals, chlor-alkali, industrial gases, other inorganic chemicals, and manufactured fibers.
Nearly all manufactured goods are produced using chemistry in some form or another. Thus, manufacturing activity is an important indicator for chemical production. On a 3MMAbasis, manufacturing activity edged higher 0.1 percent in March. Production expanded in several chemistry-intensive manufacturing industries, including food and beverages; construction supplies; machinery; fabricated metal products; computers and electronics; petroleum refining; foundries; plastics and rubber products; tires; paper; structural panels; and textile products.
Compared to March 2016, U.S. chemical production was off by 0.9 percent on a year-over-year basis, a worsening trend. Chemical production was off from year ago levels in all regions, except the Gulf Coast and Ohio Valley regions.
The chemistry industry is one of the largest industries in the United States, a $797 billion enterprise. The manufacturing sector is the largest consumer of chemical products, and 96 percent 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 March reflects production activity during January, February, and March.