Chemical Output Slips A Bit

U.S. chemical production slipped in October from both the previous month and the year-earlier month, according to seasonally adjusted data from the Federal Reserve Board. The production index for all chemicals last month was 111.6 (2002 = 100), down 1.0% from September and 0.1% from the comparable month in 2006. Meanwhile, despite a 1.8% decline from the prior month, the index for the basic chemical sector of the industry jumped 5.4% over that of October 2006 to 121.1. The government's estimate of seasonally adjusted capacity utilization for all chemicals fell to 78.4% in October from 79.2% in September but was up slightly from 78.0% a year earlier.