Global| Oct 17 2006Industrial Production Fell
by:Tom Moeller
|in:Economy in Brief
Summary
Total U.S. industrial output fell 0.6% last month. Though the decline followed an upwardly revised no change in August output, it again disappointed Consensus expectations which had been for just a 0.1% dip. Factory sector output fell [...]
Total U.S. industrial output fell 0.6% last month. Though the decline followed an upwardly revised no change in August output, it again disappointed Consensus expectations which had been for just a 0.1% dip.
Factory sector output fell 0.3% and reversed all of the prior month's gain which was upwardly revised from no change. During the third quarter, factory output rose at a 4.2% annual rate versus 2Q which rose 5.1%.
Production of durable consumer goods dropped 1.8% due to a 2.6% decline 9-7.7% y/y) in the output of automotive products. Output of appliances & furniture also was weak and fell 2.4% (-5.0% y/y). Nondurable consumer goods output fell 0.6% (+2.2% y/y) but nonenergy nondurables output rose 0.1% (3.1% y/y), the increase solely due to higher output of foods & tobacco (3.5% y/y).
Business equipment production slipped 0.2% after the upwardly revised 0.2% August gain. Output of information processing & equipment jumped 0.8% (16.7% y/y).Factory output overall less the hi-tech industries fell 0.5% (+4.8% y/y).
Overall capacity utilization fell to 81.9%, the lowest level since May.
| Production & Capacity | September | August | Y/Y | 2005 | 2004 | 2003 |
|---|---|---|---|---|---|---|
| Industrial Production | -0.6% | 0.0% | 5.5% | 3.2% | 4.1% | 0.6% |
| Manufacturing (NAICS) | -0.3% | 0.3% | 6.2% | 3.9% | 4.8% | 0.5% |
| Consumer Goods | -0.9% | 0.4% | 0.5% | 2.1% | 2.1% | 1.0% |
| Business Equipment | -0.2% | 0.2% | 18.5% | 9.1% | 9.3% | 0.0% |
| Capacity Utilization | 81.9% | 82.5% | 79.1% (9/05) | 80.1% | 78.6% | 75.7% |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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