US chemicals production improves in May

Washington – The US chemical production regional index (CPRI) rose 4.6% in May following a 1.2% decline in April and a 3.4% drop in March, according to the American Chemistry Council (ACC). 

During May, chemical output rose in all regions, reflecting capacity restoration after the winter storms along the Gulf Coast, ACC reported 28 June. 

The CPRI is measured as a three-month moving average (3MMA) and includes the Federal Reserve's recent benchmark revision, currently against the base year of 2017.     

According to ACC, the output trend was mixed in May, with improvements in the production of organic chemicals, plastic resins, chlor-alkali, adhesives and other speciality chemicals.

These gains were offset by continued weakness in segments such as synthetic rubber, synthetic dyes and pigments and consumer products, ACC reported.

Manufacturing output, closely related to chemicals consumption, also rose 1.0% 3MMA in May, following a small decline in April.

Industries which witnessed gains included food & beverages, appliances, aerospace, machinery and rubber products.

On a year-on-year basis, chemicals production remained off by 0.5%, reflecting the lingering impact of the March's freeze damage. 

Chemical production was lower than a year ago in all regions except the Gulf Coast, which turned slightly positive.