HOUSTON --Petrochemical and plastic production dampened in a key US region as a result of soft domestic demand and rising energy costs, the US Federal Reserve (Fed) said on Wednesday in its beige book.
The Fed divides the US into 12 reporting districts. The Dallas district includes Texas, the nation's prime petrochemical producer.
The Dallas district reported that high oil prices and some unplanned outages pushed ethylene and propylene prices up sharply. Downstream plastics producers also increased prices.
In fact, most parts of the US reported price increases for chemicals, plastics and other petroleum-based products, the book said. However, producers have been unable to pass through all of their increases in raw-material costs.
Overall, the Fed reported that the nation's housing market remains weak, commercial real estate is softening and consumer spending is falling.
The Fed said that US economic conditions had weakened since it released its last report. All but three of the Fed's 12 districts reported slowing economic activity.
The Dallas district reported that refineries have cut production in response to the highest gasoline inventories in 15 years. Gasoline demand is 1.5% below levels from a year ago, the book said.
On the other hand, drilling remained strong in the Dallas district, with natural-gas production rising 8% from a year ago, the book said.
The Fed divides the US into 12 reporting districts. The Dallas district includes Texas, the nation's prime petrochemical producer.
The Dallas district reported that high oil prices and some unplanned outages pushed ethylene and propylene prices up sharply. Downstream plastics producers also increased prices.
In fact, most parts of the US reported price increases for chemicals, plastics and other petroleum-based products, the book said. However, producers have been unable to pass through all of their increases in raw-material costs.
Overall, the Fed reported that the nation's housing market remains weak, commercial real estate is softening and consumer spending is falling.
The Fed said that US economic conditions had weakened since it released its last report. All but three of the Fed's 12 districts reported slowing economic activity.
The Dallas district reported that refineries have cut production in response to the highest gasoline inventories in 15 years. Gasoline demand is 1.5% below levels from a year ago, the book said.
On the other hand, drilling remained strong in the Dallas district, with natural-gas production rising 8% from a year ago, the book said.
