U.S. Chemical Production Shows Steady Improvement

Nov. 25, 2020
U.S. chemical production experiences fourth straight month of growth.

The U.S. Chemical Production Regional Index (U.S. CPRI) rose 0.9% in October following a 0.8% gain in September and a 1.0% increase in August, according to the American Chemistry Council (ACC). During October, chemical output expanded in all regions, with the largest gains occurring in the Northeast region. The U.S. CPRI is measured on a three-month moving average (3MMA) basis.

In October, chemical production continued to improve in many segments including chlor-alkali, other inorganic chemicals, organic chemicals, industrial gases, plastic resins, synthetic dyes and pigments, consumer products, adhesives, other specialty chemicals and fertilizers. Production trends eased in coatings, manufactured fibers, synthetic rubber and crop protection chemicals.

As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. The manufacturing recovery continued for a fourth consecutive month in October, with overall factory activity up by 0.8% (3MMA). The trend in production rose in nearly all key chemistry end-use industries with the strongest gains seen in iron and steel, aerospace, foundries, tires, machinery and apparel.

Compared with October 2019, U.S. chemical production was off 4.9% on a year-over-year (Y/Y) basis, the 17th consecutive month of declines, but shows steady improvement over the past several months. Chemical production remained lower than a year ago in all regions, with the largest year-ago declines occurring in the Northeast, Mid-Atlantic, and West Coast regions.

For more information, visit: www.americanchemistry.com

Sponsored Recommendations

Keys to Improving Safety in Chemical Processes (PDF)

Many facilities handle dangerous processes and products on a daily basis. Keeping everything under control demands well-trained people working with the best equipment.

Get Hands-On Training in Emerson's Interactive Plant Environment

Enhance the training experience and increase retention by training hands-on in Emerson's Interactive Plant Environment. Build skills here so you have them where and when it matters...

Managing and Reducing Methane Emission in Upstream Oil & Gas

Measurement Instrumentation for reducing emissions, improving efficiency and ensuring safety.

Micro Motion 4700 Coriolis Configurable Inputs and Outputs Transmitter

The Micro Motion 4700 Coriolis Transmitter offers a compact C1D1 (Zone 1) housing. Bluetooth and Smart Meter Verification are available.