Global| Jul 17 2006June Industrial Production Rebounded
by:Tom Moeller
|in:Economy in Brief
Summary
Total U.S. industrial output rebounded 0.8% during June after a negligible 0.1% May gain that was upwardly revised. The rise outpaced Consensus expectations for a 0.5% increase. Factory sector output increased 0.8% (5.7% y/y) after a [...]
Total U.S. industrial output rebounded 0.8% during June after a negligible 0.1% May gain that was upwardly revised. The rise outpaced Consensus expectations for a 0.5% increase.
Factory sector output increased 0.8% (5.7% y/y) after a 0.1% May up tick. During the second quarter manufacturing sector output rose 5.4% (AR), the same as during 1Q.
Production of durable consumer goods surged 2.2% (3.3% y/y) as output of motor vehicles & parts 3.3% (3.1%) and computers & video equipment jumped 1.1% (10.5% y/y). These gains, however, were offset by a 1.8% (-1.7% y/y) decline in appliance & furniture production. A second 0.4% (1.1% y/y) gain in nondurable consumer goods output reflected a 0.8% (8.7% y/y) rise in clothing output.
Business equipment production rose 0.7% (12.3% y/y) and more than recovered a 0.2% May decline. Production of information processing & equipment jumped another 1.3% (21.3% y/y).
Factory output less the hi-tech industries increased 0.7% (4.6% y/y). During 2Q this output measure rose 4.5% (AR) after a 4.8% gain during 1Q.
Overall capacity utilization rose to 82.4% in June, its highest level in six years. Factory sector utilization at 80.8% also is at its highest since 2000.
Diverging Measures of Capacity Utilization: An Explanation from the Federal Reserve Board can be found here.
| Production & Capacity | June | May | Y/Y | 2005 | 2004 | 2003 |
|---|---|---|---|---|---|---|
| Industrial Production | 0.8% | 0.1% | 4.5% | 3.2% | 4.1% | 0.6% |
| Manufacturing | 0.8% | 0.1% | 5.7% | 3.9% | 4.8% | 0.5% |
| Consumer Goods | 0.8% | 0.1% | 1.7% | 2.1% | 2.1% | 1.0% |
| Business Equipment | 0.7% | -0.2% | 12.3% | 9.1% | 9.3% | 0.0% |
| Capacity Utilization | 82.4% | 81.8% | 80.3% (6/05) | 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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