Chemicaloutput gains

Production of U.S. chemicals continued its month-to-month growth in January but fell almost imperceptibly from output in January 2005, according to seasonally adjusted data from the Federal Reserve Board. The production index for all chemicals rose 1.1% from December to 103.7 (2002 = 100) but declined by 0.1% from January 2005. Meanwhile, the index for basic chemicals, which was devastated by the 2005 hurricanes, recovered by 2.5% from December to 96.3. The January 2006 index for basics, however, was still 8.9% below the figure for the corresponding month one year earlier. The government estimates that capacity utilization for all chemicals in January was 76.2%, up from 75.4% in December, but off from 76.9% in January 2005.