Chemical Production in U.S. Continues to Rise

The U.S. Chemical Production Regional Index (U.S. CPRI) rose by 0.9 percent in December and 0.7 percent in January, with production rising in all major producing regions for the second month in a row, according to the American Chemistry Council (ACC).

Output of the nation’s overall manufacturing sector rose by 0.8 percent in January, following a 0.7 percent gain in December, based on a three-month moving average (3MMA). Within the manufacturing sector, output in several key chemistry end-use markets increased, including appliances, motor vehicles, aerospace, construction supplies, machinery, computers, plastics products, paper, structural panels, textile products, printing, apparel, and furniture.

Compared to January 2012, total chemical production in all regions was up 0.9 percent and remained ahead year-over-year in all regions except the Mid-Atlantic and West Coast regions which were off from a year ago. Year-ago comparisons are improving for the U.S. as a whole with all regions trending upward on a Y/Y basis.

The U.S. CPRI was developed by Moore Economics to track chemical production activity in seven regions of the United States and is comparable to the U.S. industrial production index for chemicals 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 January reflects production activity during November, December, and January.

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