WASHINGTON, June 22, 2020 (PRNewswire) — According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI) fell by 2.0 percent in May following a 2.7 percent decline in April and a 0.9 percent decline in March. During May, chemical output declined across all regions, with the steepest drops in the Midwest and West Coast regions. The lower level of activity is directly related to supply chain disruptions and continued restrictions across much of the country during May.
Designated an essential industry by the U.S. Department of Homeland Security, chemical production continued to ease on a three- month moving average (3MMA) basis, with declines in all segments except plastic resins. Within several major segments, production of some chemical materials increased. These included supply chains tied to PPE and disinfection products.
As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. As restrictions eased in many parts of the U.S., many factories reopened. Overall manufacturing activity was 6.2 percent lower on a 3MMA basis, with declines – in some cases quite steep – across all industry sectors.
Compared with May 2019, U.S. chemical production was off by 6.0 percent, the twelfth consecutive month of year-over-year declines. Chemical production was lower in all regions, with the largest year-ago declines in the West Coast, Ohio Valley and Midwest regions.
The chemistry industry is one of the largest industries in the United States, a $565 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. The U.S. CPRI 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 U.S. CPRI is measured using a three-month moving average. Thus, the reading in May reflects production activity during March, April and May.
The American Chemistry Council (ACC) represents the leading companies engaged in the business of chemistry. ACC members apply the science of chemistry to make innovative products and services that make people's lives better, healthier and safer. ACC is committed to improved environmental, health and safety performance through Responsible Care, common sense advocacy designed to address major public policy issues, and health and environmental research and product testing. The business of chemistry is a $565 billion enterprise and a key element of the nation's economy. It is one of the nation's largest exporters, accounting for ten percent of all U.S. goods exports. Chemistry companies are among the largest investors in research and development. Safety and security have always been primary concerns of ACC members, and they have intensified their efforts, working closely with government agencies to improve security and to defend against any threat to the nation's critical infrastructure.
