The American Chemistry Council's US Chemical Production Regional Index was flat for September, the second consecutive month without growth, the ACC said in a report Thursday.
The US CPRI, which tracks activity in seven US regions, showed gains in only the Gulf Coast and Ohio Valley regions. Declines were shown in the Midwest, Mid-Atlantic, Southeast, Northeast and West Coast regions. Compared with September 2011, total chemical production in all regions was off by 0.5%, according to the ACC report.
Following a revised 0.5% gain in August, chemical production in the Gulf Coast region -- which makes petrochemicals, inorganics and synthetic materials -- was up 0.2% in September. In the Ohio Valley region -- which is largely influenced by production of basic chemicals, plastics and synthetic rubber, coatings and consumer products -- chemical production edged up 0.1% in September.
The Midwest and Southeast regions slipped 0.1% for September, the Mid-Atlantic and Northeast regions fell 0.2%, and the West Coast region dropped 0.3%, according to the ACC data.
A review of the three-month moving average showed that gains in the output of organic chemicals, pesticides, industrial gases, plastic resins, man-made fibers and synthetic rubber were offset by lower production of fertilizers, coatings, adhesives, inorganic chemicals, consumer products and pharmaceuticals.
In the first nine months of 2012, chemical production was up 0.2% nationally over the same period in 2011, with only the Ohio Valley and Northeast regions ahead on a year-to-date basis, the ACC said.
The US manufacturing sector slipped 0.1% in September based on a three-month moving average, following a 0.1% decline in August, based on Federal Reserve data ACC cited. Within the manufacturing sector, output in several key petrochemical end-use markets increased, including aerospace, construction materials, furniture, plastic products and paper. The manufacturing sector is the largest consumer of chemical products, and 96% of manufactured goods are touched by chemistry, the ACC said.
The US CPRI was developed by Moore Economics to track chemical production activity in seven regions of the US. It is based on information from the Federal Reserve. To smooth month-to-month fluctuations, the US CPRI is measured using a three-month moving average. Thus, the reading in September reflects production activity during July, August and September.
