Global| Aug 15 2014U.S. Factory Output Posts a Strong Increase
by:Tom Moeller
|in:Economy in Brief
Summary
Production in the manufacturing sector jumped 1.0% (4.9% y/y) during July after increasing 0.3% during the prior two months, last month reported as 0.1% for June and 0.4% for May. Overall industrial output in the U.S. increased 0.4% [...]
Production in the manufacturing sector jumped 1.0% (4.9% y/y) during July after increasing 0.3% during the prior two months, last month reported as 0.1% for June and 0.4% for May. Overall industrial output in the U.S. increased 0.4% during July following a 0.4% June rise, revised from 0.2%. The monthly increase was held back by a 3.4% decline (-1.0% y/y) in utility output. A 0.3% gain in total production was expected in the Action Economics Forecast Survey.
Consumer goods output rose 0.5% (4.2% y/y) following a 0.2% rise. Automotive products production jumped 8.5% (19.8% y/y) following a 0.3% uptick. Appliances, furniture & carpeting production increased 1.8% (9.2% y/y) following strong increases in the prior four months. Computers & electronics output gained 1.5% (8.8% y/y) following three strong monthly gains. Amongst soft-goods industries, output fell 0.7% (+2.1% y/y). Paper output declined 1.4% (-3.2% y/y) and food & tobacco production was off 0.6% (+2.0% y/y). These declines were offset by clothing production which rebounded 2.0% (5.0% y/y) after three months of decline. Chemical output nudged 0.1% higher (2.4% y/y). Business equipment production jumped 1.3% (7.0% y/y after a 0.3% slip.
Within the special aggregate series, high technology industries posted a 1.3% production gain (8.3% y/y), paced by a 1.6% rise (11.4% y/y) in semiconductors. Factory production excluding the high-tech sector rose 0.9% (4.8% y/y). Manufacturing production excluding both high-tech and autos gained 0.3% (3.6% y/y).
The capacity utilization rate nudged up to 79.2% last month, about where it's been for four straight months. That remained below the 80.5% high averaged in 2007. In the factory sector, the capacity utilization rate jumped to 77.8%, its highest level since February 2008. Total industry capacity rose an improving 2.7% y/y while factory sector capacity increased 2.0%.
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) | Jul | Jun | May | Jul Y/Y | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Total Output | 0.4 | 0.4 | 0.3 | 5.0 | 2.9 | 3.8 | 3.3 |
| Manufacturing | 1.0 | 0.3 | 0.3 | 4.9 | 2.7 | 4.1 | 3.3 |
| Consumer Goods | 0.5 | 0.2 | -0.5 | 4.2 | 2.4 | 1.7 | 1.5 |
| Business Equipment | 1.3 | -0.3 | 0.7 | 7.0 | 3.6 | 7.5 | 5.6 |
| Construction Supplies | 0.8 | 0.7 | 1.3 | 5.3 | 4.2 | 4.6 | 3.0 |
| Materials | 0.3 | 0.7 | 0.6 | 5.6 | 3.2 | 4.5 | 4.7 |
| Utilities | -3.4 | -0.7 | 0.0 | -1.0 | 2.1 | -2.1 | -0.2 |
| Capacity Utilization (%) | 79.2 | 79.1 | 79.0 | 77.5 | 78.0 | 77.3 | 76.3 |
| Manufacturing | 77.8 | 77.2 | 77.1 | 75.6 | 76.1 | 75.5 | 73.9 |
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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