Recent Updates

  • US: Consumer Sentiment (Jan-prelim), GDP by Industry (Q3)
  • Consumer Sentiment Detail (Jan-prelim)
  • Canada: MSIO, Intl Transactions in Securities (Nov)
  • Ivory Coast: IP (Nov); South Africa: Financial Soundness Indicators (Nov); Turkey: House Sales (Dec), IIP (Nov)
  • Spain: International Trade (Nov)
  • Italy: BOP (Nov)
  • UK: Retail Sales (Dec)
  • Euro area: Balance of Payments (Nov)
  • more updates...

Economy in Brief

U.S. Industrial Production Recovers Somewhat
by Tom Moeller  October 16, 2012

The factory sector remained under pressure last month because of slack demand and too many inventories. Industrial production gained a modest 0.4% during September following a 1.4% August decline, last month reported as -1.2%. A 0.3% increase had been expected. The pressure showed up in a negligible 0.2% rise in factory output which was accompanied by a 1.5% jump in utilities output following a 4.3% August decline.

In manufacturing, the 0.2% (3.2% y/y) increase owed to a minimal 0.1% (0.1% y/y) rise in consumer goods production. That was held back by a 2.5% decline (+13.3% y/y) in motor vehicles & parts production. Excluding motor vehicles, factory output rose 0.3% (2.4% y/y). Production of high-tech products also was a drag and fell 0.6% (-5.1% y/y). Outside both of these industries industrial production rose 0.4% (2.8% y/y). Business equipment production gained 0.8% (10.9% y/y).

Capacity utilization rose to 78.3% from a downwardly revised 78.0% in August. In manufacturing alone, utilization held steady at 76.8% and remained up from the recession low of 64.4%. Overall capacity is estimated to have risen 1.5% y/y following a 0.2% dip last year and a 2.0% decline during 2010. In the factory sector, capacity rose 1.3% y/y and, excluding the high-tech industries, increased 1.3%.

Industrial production and capacity data are included in Haver's USECON database, with additional detail in the IP database. The expectations figure is in the AS1REPNA database.

Industrial Production (SA, % Change) Sep Aug Jul Sep Y/Y 2011 2010 2009
Total Output 0.4 -1.4 0.6 2.8 4.1 5.4 -11.4
Manufacturing 0.2 -1.0 0.3 3.2 4.3 5.7 -13.8
  Consumer Goods 0.1 -1.6 0.7 0.1 2.3 1.1 -6.9
  Business Equipment 0.8 -0.9 0.1 10.9 8.3 8.3 -18.2
  Construction Supplies 1.4 0.1 -0.5 4.7 5.6 3.8 -22.9
Materials 0.4 -1.6 0.8 3.0 4.6 8.4 -11.5
Utilities 1.5 -4.3 2.8 -1.4 -0.3 3.6 -2.5
Capacity Utilization (%) 78.3 78.0 79.2 77.2 76.8 73.7 68.5
 Manufacturing 76.8 76.8 77.6 75.5 75.0 71.3 65.5
close
large image