According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) slipped 0.3 percent in August, following an upwardly revised 0.2 percent gain in July. During July, chemical production was lower in all seven regions for the second consecutive month.
On a three-month moving average (3MMA), output of the nation’s overall manufacturing sector edged higher by 0.2 percent in August, following a 0.1 percent gain in July. Within the manufacturing sector, output in several key chemistry end-use markets grew, including semiconductors, structural panels, furniture, appliances, rubber products, apparel, machinery, motor vehicles, construction supplies, and metal products. Manufacturing demand is a significant driver of demand for chemistry products. Recent months have seen weaker growth as a result of lower exports and the impact of the sequester. Higher construction activity and vehicle sales, however, in addition to recovery in Europe and faster growth in China, will increase demand for manufactured goods, including chemicals.
Also measured on a 3MMA basis, overall chemical production was again mixed. Gains in the output of pesticides, chlor-alkali, coatings, other specialties, industrial gases, and synthetic rubber were offset by lower production of organic chemicals, pharmaceuticals, acids, consumer products, plastic resins, adhesives, fibers, and fertilizers.
Compared to August 2012, total chemical production in all regions accelerated to a 1.2 percent year-over-year gain, following a 1.4 percent gain in July. All regions were ahead compared to a year ago. Indeed, the year-over-year comparisons improved in three of seven regions, including the Mid-Atlantic, Northeast, and West Coast regions. Comparing the first eight months of 2013 to that in 2012, chemical production was up 0.8 percent nationally, with five of the seven regions posting gains.
The chemistry industry is one of the largest industries in the United States, a $770 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 by Moore Economics to track chemical production activity in seven regions of the United States. It is comparable to the U.S. industrial production index for chemicals published by the Federal Reserve. The U.S. CPRI is based on information from 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 August reflects production activity during June, July, and August.
Following a revised 0.3 percent decline in July, chemical production in the Gulf Coast region fell by 0.4 percent in August. August production was still up 0.9 percent compared to a year before, and was up by 1.8 percent on a year-to-date basis. The Gulf Coast region is dominated by the production of key building block materials, such as petrochemicals, inorganics, and synthetic materials.
In the Midwest region, which is influenced by production of agricultural chemicals, plastics, paints, and other chemical products, chemical production slipped by 0.2 percent in August, following a 0.2 percent decline in July. Compared to August 2012, Midwest chemical production was up by 0.9 percent, and 0.3 percent on a year-to-date basis.
In the Ohio Valley region, largely influenced by production of basic chemicals, plastics and synthetic rubber, coatings, and consumer products, chemical production slipped by 0.3 percent in August. This was following a 0.3 percent decline in July. Compared to August 2012, production in the region was up by 3.3 percent, and was also up 4.0 percent on a year-to-date basis.
In the Mid-Atlantic region, where pharmaceutical manufacturing is prominent, chemical production edged lower by 0.3 percent in August, following a 0.1 percent decline in July. Compared to August 2012, Mid-Atlantic chemical production was up by 0.5 percent, but remained off by 0.6 percent on a year-to-date basis.
In the Southeast region, which is influenced heavily by production of basic chemicals, fibers, agricultural and other chemical products, chemical production fell by 0.2 percent in August, following a 0.2 percent decline during July. Compared to August 2012, Southeast region chemical production was up by 1.1 percent year-over-year and was higher by 0.7 percent on a year-to-date basis.
In the Northeast region, which is influenced by pharmaceutical manufacturing and other specialty chemical manufacturing, chemical production slipped by 0.2 percent during August, following a 0.2 percent decline in July. Compared to August 2012, Northeast region chemical production was up by 1.1 percent, and was 0.2 percent higher on a year-to-date basis.
In the West Coast region, chemical production edged lower by 0.2 percent in August, following a 0.2 percent decline in July. Chemical production in the West Coast region was up by 0.4 percent from last year and remained down 1.0 percent on a year-to-date basis.
There are no comments
Please login to post comments