The U.S. Chemical Production Regional Index (U.S. CPRI) rose by 0.2% in July after a 0.1% decline in June and a 0.4% gain in May, according to the American Chemistry Council (ACC).
Chemical output was mixed across regions. The U.S. CPRI is measured as a three-month moving average (3MMA).
On a 3MMA basis, chemical production within segments was mixed in July. 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. 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. Manufacturing output was flat in July (3MMA). The 3MMA trend in manufacturing production was mixed, with gains in the output of apparel, semiconductors, motor vehicles, oil and gas, foundries, plastic & rubber products, aerospace, electronics, and construction supplies.
Compared with July 2021, US 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 US. The U.S. CPRI is based on information from the Federal Reserve, and includes monthly revisions as published by the Federal Reserve. The U.S. CPRI includes the most recent Federal Reserve benchmark revision released on July 28, 2022. To smooth month-to-month fluctuations, the U.S. CPRI is measured using a three-month moving average. The reading in July reflects production activity during May, June, and July.