Chemical Production Has Its Downs And Ups

Total U.S. chemical production in February slipped from the previous month but was ahead of February of last year, according to seasonally adjusted data from the Federal Reserve Board. The production index for all chemicals fell 0.2% from January to 109.1 (2002 = 100), but it was up 0.4% from February 2006. The index for basic chemicals, however, fared worse, declining 1.3% from the previous month and 2.4% from the comparable month in 2006. The government estimates capacity utilization for all chemicals at 77.0% in February, off from 77.3% in January and 77.5% in the year-earlier month.