ACC: US chemical production ended 2016 on a soft note
WASHINGTON – According to the American Chemistry Council (ACC), the US Chemical Production Regional Index (US CPRI) fell back 0.2% in December, following a 0.2% gain in November and a 0.1% decline in October, as measured on a three-month moving average (3MMA) basis. In December, chemical production was lower across all regions.
Also measured on a 3MMA basis, chemical production was mixed. There were gains in the production output trend of fertilizers, consumer products, chlor-alkali, miscellaneous inorganic chemicals, and synthetic dyes and pigments. These gains were partially offset by declines in the production of organic chemicals, plastic resins, pharmaceuticals, synthetic rubber, other specialties, industrial gases, pesticides, coatings, adhesives, and manufactured fibers.
Nearly all manufactured goods are produced using chemistry in some form or another. Thus, manufacturing activity is an important indicator for chemical production. On a 3MMA basis, manufacturing activity edged higher for a second month in December. Production was higher in several chemistry-intensive manufacturing industries, including food and beverages, appliances, motor vehicles, construction supplies, fabricated metal products, computers, semiconductors, iron and steel products, foundries, paper, structural panels, printing, apparel and furniture.
Compared to December 2015, US chemical production was off 1.5% on a year-over-year basis, a deteriorating comparison compared to last month. All regions experienced declines in year-over-year growth.
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