ACC American Chemistry Council : U.S. Chemical Production Accelerates in December; Year Ago Comparisons Continue to Strengthen in All Regions

Contact: Patrick Hurston [phone]  
Email: [e-mail]

WASHINGTON (January 29, 2015) - According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) continued to expand, rising 0.8 percent in December following an upwardly revised 0.9 percent gain in November. Chemical output remained ahead of month ago levels in all regions.

Also measured on a three-month moving average (3MMA) basis, chemical production by segment was mixed. There were gains in the output of organic chemicals, chlor-alkali, synthetic rubber, coatings, synthetic dyes and pigments, industrial gases, consumer products, pesticides, adhesives and pharmaceuticals. These gains were partially offset by declines in the production of fertilizers, plastic resins, synthetic fibers, acids, and other inorganic chemicals.

Nearly all manufactured goods are produced using chemistry in some form or another making manufacturing activity an important indicator for chemical production. Overall manufacturing growth slowed during the last month of the year, but the trend was for higher growth in the fourth-quarter. Production expanded in several chemistry-intensive manufacturing industries, including motor vehicles, construction materials, machinery, computers and electronics, structural panels, paper, printing, plastic and rubber products, apparel, and furniture.

Compared to December 2013, total chemical production in all regions was ahead by 5.2 percent on a year-over-year (Y/Y) basis, a strengthening trend. Chemical production was up from a year ago in all regions.

The chemistry industry is one of the largest industries in the United States, an $812 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 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 (3MMA). Thus, the reading in December reflects production activity during October, November, and December.