Production of chemicals declined by 0.1% in October, as overall industrial production was flat, according to data from the U.S. Federal Reserve Board, as analyzed by the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com) in its most recent Weekly Chemistry and Economic Trends Report.
The small drop for October left chemical production at 94.2% of its 2007 level. In September, production had increased by 1.5% after a 0.5% increase in August, according to ACC analysis.
ACC’s analysis also found that, excluding pharmaceuticals, production declined 0.8% in October, with basic chemicals down 0.8%. Inorganic chemicals (up 1.7%), industrial gases (up 3.5%), and synthetic dyes and pigments all rose in October, ACC said, but the gains were not enough to offset declines in bulk petrochemicals and organic intermediates (down 1.7%), plastic resins (down 2.4%), synthetic rubber (down 2.7%), and man-made fibers.
The dip in chemical production came amid overall industrial production that was flat in October, following a 0.2% decline in September and a 0.2% gain in August, according to ACC’s take on the Federal Reserve data. Compared to a year ago, industrial production was up 5.3%, ACC said in its report.
Other data collected by ACC for its report suggest that chemical prices rose 0.9% in October overall, following a 0.2% gain in September. Prices for pharmaceuticals rose 0.4% while prices for other chemicals (excluding pharmaceuticals) rose 1.2% in October, the report says.
Within the wider economy, other data collected by ACC suggest that housing starts retreated in October to the lowest level in 18 months, but building permits edged upward, and builder confidence rose slightly. The price reports show that inflation remains moderate, ACC says, but also show that upstream producer prices are higher as commodity prices continue to advance with the weakening of the dollar. Finally, ACC noted that business inventories grew and were balanced against rising sales.
Overseas, ACC cited a report by the OECD that projected the economies of the 33 member countries to grow at a rate of 2.8% during 2010, but slow to a 2.3% rate in 2011. Export-oriented economies such as Germany and Japan have prospered due to rapid emerging market growth, notes ACC.