Following a 0.9 percent decline in March and a 2.7 percent decline in April, the US Chemical Production Regional Index (US CPRI) fell by 2.0 percent in May, the American Chemistry Council said.
Chemical output across all regions declined last month. The steepest drops registered by West Coast and Midwest regions. With declines in all segments except plastic resins, chemical production continued to ease on a three- month moving average (3MMA) basis.
Production of some chemical materials improved within several major segments, including supply chains tied to PPE and disinfection products. For chemical demand, manufacturing activity is an important indicator as nearly all manufactured goods are produced using chemistry in some form.
Many factories resumed operations as restrictions eased in many parts of the US. Overall manufacturing activity was 6.2 percent lower on a 3MMA basis, with declines across all industry sectors.
