Chemical production in the United States increased by 0.2% in July, according to the American Chemistry Council’s U.S. Chemical Production Regional Index.
The increase comes after a slight 0.1% decline in June, and a 0.4% gain in May, ACC said.
Measured on a three-month moving average (3MMA) , July chemical production within segments was mixed across regions. There were gains in the production of industrial gases, synthetic dyes and pigments, other inorganic chemicals, adhesives, coatings and other specialty chemicals, synthetic rubber, and crop protection chemicals. But these gains were offset by lower production of plastic resins, organic chemicals, fertilizers, and consumer products.
As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand, and manufacturing output was flat in July. ACC said. The 3MMA trend in manufacturing production was mixed, with gains in the output of apparel, semiconductors, motor vehicles, oil and gas, foundries, plastic and rubber products, aerospace, electronics, and construction supplies.
Compared with July 2021, U.S. chemical production was up 0.7%, a slower rate of growth than last month. Chemical production was higher than a year ago in all regions except the Gulf Coast, which was 1.9% lower.
The U.S. CPRI was developed to track chemical production activity in seven regions of the United States. It is based on information from the Federal Reserve, and as such, includes monthly revisions as published by the Federal Reserve. To smooth month-to-month fluctuations, the index is measured using a three-month moving average, so the reading in July reflects production activity during May, June, and July.