According to American Chemistry Council press release on March 29, 2023, the U.S. Chemical Production Regional Index (U.S. CPRI) rose by 0.7% in February following declines of 2.4% in December and 0.6% in January, according to the American Chemistry Council (ACC).
Martha Moore, ACC's Chief Economist
“February marked a slight rebound and rise in chemical output after several months of decline thanks to increased output for consumer goods and fertilizers. These gains are being offset by declines in overall manufacturing output, which continue to push chemical output levels below last year’s production numbers.”
Key findings:
- February’s gain reflects a rebound in the most recent month that followed several declines at the end of the year due to lower manufacturing demand and disruptions from winter storm Elliott.
- Chemical output was higher than a month ago in all regions, with the largest gain in the Gulf Coast, home to much of the nation’s basic industrial chemical and synthetic materials capacity.
- Output of plastic resins, consumer products, fertilizers, organic chemicals, and pesticides were higher.
- Gains were offset by lower production of coatings, adhesives, other specialty chemicals, synthetic rubber manufactured fibers, industrial gases, and synthetic dyes & pigments.
The U.S. CPRI was developed by ACC to track chemical production activity in seven regions of the United States.
As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand.
Down for a fourth consecutive month, manufacturing output was lower by 0.2% in February on a 3MMA basis. The 3MMA trend in manufacturing production was mixed, with output in most chemistry-consuming segments continuing to contract. Output continued to expand, however, in aerospace, apparel and appliances.
Compared with February 2022, U.S. chemical production was 4.5% lower than a year ago in all regions, with the largest declines in the Gulf Coast.
The U.S. CPRI is based on information from the Federal Reserve, and as such, includes monthly revisions as published by the Federal Reserve. The U.S. CPRI includes the most recent Federal Reserve benchmark revision released on June 28, 2022. To smooth month-to-month fluctuations, the U.S. CPRI is measured using a three-month moving average. The reading in February reflects production activity during December, January, and February.
American Chemistry Council
The American Chemistry Council (ACC) represents the leading companies engaged in the multibillion-dollar business of chemistry. ACC members apply the science of chemistry to make innovative products, technologies and services that make people's lives better, healthier and safer. ACC is committed to improved environmental, health, safety and security performance through Responsible Care®; common sense advocacy addressing major public policy issues; and health and environmental research and product testing. ACC members and chemistry companies are among the largest investors in research and development, and are advancing products, processes and technologies to address climate change, enhance air and water quality, and progress toward a more sustainable, circular economy.
