Reflecting ongoing hurricane disruptions and supply chain challenges, the U.S. Chemical Production Regional Index (U.S. CPRI) fell by 1.5% in September following a 0.4% decline in August and a 1.1% gain in July, according to the American Chemistry Council (ACC).
Chemical output fell sharply in the Gulf Coast region and declined in other regions. The U.S. CPRI is measured as a three-month moving average (3MMA).
Chemical production was mixed in September (3MMA), showing an improving trend in the production of synthetic rubber, manufactured fibers, other specialty chemicals, fertilizers, crop protection chemicals, adhesives, coatings, and consumer products. These gains were offset by weakness in organic chemicals, plastic resins, basic inorganic chemicals, and industrial gases.
As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. Following a 0.4% gain in August, manufacturing output expanded by 0.2% in September (3MMA). The 3MMA trend in manufacturing production was mixed, with gains seen in the output of appliances, aerospace, construction supplies, fabricated metal products, machinery, computers, iron and steel products, plastic products, paper, printing, textile mill products, apparel, and furniture.
Compared with September 2020, U.S. chemical production was up 3.5%, a weaker comparison than last month. Chemical production was higher than a year ago in all regions.
The chemistry industry is one of the largest industries in the United States, a $486 billion enterprise. The manufacturing sector is the largest consumer of chemical products, and 96% 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 includes monthly revisions as published by the Federal Reserve. The U.S. CPRI includes the most recent Federal Reserve benchmark revision released on May 28, 2021.
To smooth month-to-month fluctuations, the U.S. CPRI is measured using a three-month moving average. The reading in September reflects production activity during July, August, and September.
