WASHINGTON (January 26, 2017) – According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) fell back 0.2 percent in December, following a 0.2 percent gain in November and a 0.1 percent decline in October, as measured on a three-month moving average (3MMA) basis. In December, chemical production was lower across all regions.
Also measured on a 3MMA basis, chemical production was mixed. There were gains in the production output trend of fertilizers, consumer products, chlor-alkali, miscellaneous inorganic chemicals, and synthetic dyes and pigments. These gains were partially offset by declines in the production of organic chemicals, plastic resins, pharmaceuticals, synthetic rubber, other specialties, industrial gases, pesticides, coatings, adhesives, 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 3MMA basis, manufacturing activity edged higher for a second month in December. Production was higher in several chemistry-intensive manufacturing industries, including food and beverages, appliances, motor vehicles, construction supplies, fabricated metal products, computers, semiconductors, iron and steel products, foundries, paper, structural panels, printing, apparel and furniture.
Compared to December 2015, U.S. chemical production was off 1.5 percent on a year-over-year basis, a deteriorating comparison compared to last month. All regions experienced declines in year-over-year growth.
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 December reflects production activity during October, November, and December.