Global Chemical Output Decline Slows in September to Six-Month Low
Global Global chemical manufacturing continued to decline in September, with production softening across every major region. The pace of decline has slowed in many regions, however. The Global Chemical Production Regional Index (Global CPRI) fell for a sixth consecutive month, down 0.2% in September and was 3.6% lower than a year earlier, according to new data from the American Chemistry Council (ACC).
“U.S. chemical production moved slightly lower in September, edging lower by 0.1% for the month and 4.5% from a year earlier”, said David Lan, ACC’s Director of Economics and Statistics. “Driven primarily by industries tied to data center investment, the broader manufacturing sector continued to expand in September according to both the Institute for Supply Management (ISM) Purchasing Managers Index (PMI)® and the Federal Reserve.
While the most basic semiconductor chip requires 500 process chemicals to produce, industries that consume larger volumes of chemistry (primarily housing) continued to find their footing.”
“The steepest regional declines were in Russia and the Middle East & Africa, where chemical output fell by 1.7% and 1.4%, respectively, as conflict in both regions continued to disrupt production and access to feedstocks.
He added: “Chemical production also eased in Europe, China, and South America.”