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Chemical Production Regional Index

U.S. Chemical Production Slips in May

“U.S. chemical production contracted in May, with a 0.4% decrease from April,” said David Lan, ACC’s Director of Economics and Statistics. “Production declined in all regions, but the Northeast and Southeast regions experienced the largest drop.”

“Following a 0.5% gain in April, global production continued to rise by 0.3% in May 2025,” Lan added. “Production rose in Europe, Asia, Africa, and the Middle East but declined elsewhere.

Key findings:

  • U.S. Down: Chemical output in the U.S. decreased in May as trade-related uncertainty weighed on production decisions and customer demand remained weak. In the U.S., production varied by segment, but the consumer products segment was the biggest contributor to the decline.
  • China Slows: China’s output slowed to 0.3% in May as front-loading subsided. While trade-related issues will continue to impact China’s export potential to the U.S., some aspects of China’s domestic consumption, including retail sales and travel spending, are showing signs of life, which may reduce its dependency on export markets in the future.
  • Europe Grows: Even though front-loading had subsided, production continued to grow in May (up by 0.6%) as the Eurozone’s Manufacturing PMI (S&P Global) improved and new orders stabilized. Trade-related uncertainties and recent reorganization in the chemical industry may weigh on the European recovery moving forward.
  • South America Mixed: South American production continued to decline in May, with another large decline in Brazilian output, but year-over-year output rose (5.9%). 
     

Additional Data