WASHINGTON (July 21, 2022) — The U.S. Chemical Production Regional Index (U.S. CPRI) eased by 0.1% in June following gains of 0.5% in May and 1.0% in April, 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 June. There were gains in the production of synthetic rubber, industrial gases, coatings, manufactured fibers, synthetic dyes and pigments, adhesives, other organic chemicals, crop protection chemicals, other specialty chemicals, and fertilizers. These gains were offset by lower production of plastic resins, organic chemicals, 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 eased by 0.1% in June (3MMA). The 3MMA trend in manufacturing production was mixed, with gains in the output of motor vehicles, aerospace, iron and steel, oil and gas extraction, and rubber products.
Compared with June 2021, U.S. chemical production was ahead by 2.5%, 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 0.5% lower.
I would expect the high-volume chemical manufacturing industry to show signs of slowing; hopefully this doesn't spill over into employment as well.