The American Chemistry Council’s Global Chemical Production Regional Index (Global CPRI) shows growth in the industry has been nearly flat most of the year thus far. The headline index for August reportedly showed no gain or loss on a three-month moving average (3MMA) basis. This follows six months of relatively stable activity after a fairly strong fourth quarter 2015.
During August, chemical production increased in Europe and in Asia-Pacific region and fell elsewhere. The Global CPRI was up 1.9% year-over-year on a 3MMA basis and stood at 108.3% of its average 2012 levels in August. Capacity usage in the global business of chemistry declined 0.2 percentage points to 78.7%. This is reportedly off from 80.3% last August and is below the long-term (1987-2015) average of 89.1%.
During August, results were largely negative on a product basis with weakness centered in the production of agricultural chemicals, consumer products, inorganic chemicals, inorganic chemicals, organic chemicals, plastic resins, synthetic rubber, manufactured fibers, and other specialties. Gains were registered in pharmaceutical and coatings.
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