Global Chemical Production Softens in April
U.S. chemical production edged lower in April, signaling softer momentum even as broader manufacturing showed signs of resilience. Output slipped 0.1% for the month and was down 0.8% from a year earlier, according to new data from the American Chemistry Council (ACC).
“U.S. chemical activity lost some momentum in April, even as the broader manufacturing sector continued to expand,” said David Lan, ACC’s Director of Economics and Statistics. “The Institute for Supply Management Purchasing Managers Index points to a fourth straight month of growth in manufacturing, with key chemistry-consuming industries—like plastics and rubber—showing improvement.”
Lan stressed the central role of chemistry in the industrial economy. “Chemicals are the backbone of modern manufacturing,” he said. “From electronics and energy to housing and autos, virtually every major sector depends on chemical inputs to keep production moving.”
“Looking more broadly, global chemical production fell 0.8% in April, reversing a modest gain in March,” Lan said. “On a global scale, April marked a step back. Supply disruptions tied to the ongoing challenges in the Middle East have constrained both energy and chemical production in the region.”
“Producers in Asia are facing tighter supplies of petrochemical feedstocks, which is dragging down output,” Lan explained. “We’re also seeing weaker production in Russia.”
He added: “Europe and South America are bucking the trend with continued gains, while North American production was essentially flat.”