US chemical activity shows summer recovery

According to the American Chemistry Council (ACC), the US Chemical Production Regional Index (CPRI) rose by 0.5% in June, following a revised 0.1% decline in May and flat growth in April.

Over the same period, chemical production by segment was mixed. There were gains in the output of pesticides, synthetic rubber, chlor-alkali, plastic resins, and pharmaceuticals. 

These gains were offset, however, by declines in the production of organic chemicals, adhesives, acids, phosphates, sulfates, manufactured fibers, other specialties, and fertilizers. Coatings production was flat.

Nearly all manufactured goods are produced using chemistry in some form or another. Thus, manufacturing activity is an important indicator for chemical production, the ACC explains. On a three-month-moving average basis, manufacturing activity edged higher by 0.1% in June, following gains in April and May. 

Production expanded in several chemistry-intensive manufacturing industries, including appliances, motor vehicles, construction supplies, computers, semiconductors, machinery, plastic products, structural panels, furniture, and textile products.

Compared to June 2014, US chemical production was ahead by 4.0% on a year-over-year basis, an improving comparison. Chemical production remained ahead of year ago levels in all regions.