Global| Jan 14 2005Industrial Production Surged
by:Tom Moeller
|in:Economy in Brief
Summary
Industrial production finished 2004 on a strong note and surged 0.8%. The gain followed a downwardly revised 0.2% November increase but it doubled Consensus expectations had been for a 0.4% increase. The 4.1% gain in production for [...]
Industrial production finished 2004 on a strong note and surged 0.8%. The gain followed a downwardly revised 0.2% November increase but it doubled Consensus expectations had been for a 0.4% increase. The 4.1% gain in production for all of last year was the strongest since a 4.3% rise in 2000.
A 2.7% rise in electric & gas utilities last month boosted the production gain, but the factory sector nevertheless performed well. The 0.6% (5.1% y/y) rise in December factory sector output raised production 4.8% for the full year, the strongest since 1999.
The high tech sector contributed to the 2004 output gain with a 19.1% rise for the full year. Output of semiconductors & related equipment rose by nearly one third for the year though that rate of gain is half the growth logged during the late 1990s. Outside the technology sector, the 3.9% full year gain in factory output excluding high tech was the largest since 1997.
Output of appliances, furniture & carpeting added 0.6% (2.8% y/y) to a downwardly revised 0.9% November gain and for the year grew 4.8%. Clothing output turned in the best showing since April with a 0.8% (-4.2% y/y) rise but output still fell 6.2% for the year, the tenth down year in a row.
Total capacity utilization rose to 79.2% from an upwardly revised November. Capacity grew 1.2% y/y.
| Production & Capacity | Dec | Nov | Y/Y | 2004 | 2003 | 2002 |
|---|---|---|---|---|---|---|
| Industrial Production | 0.8% | 0.2% | 4.3% | 4.1% | -0.0% | -0.3% |
| Capacity Utilization | 79.2% | 78.6% | 76.8% (12/03) | 78.1% | 75.5% | 75.3% |
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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