Global| Apr 15 2015U.S. Industrial Production Declines
by:Tom Moeller
|in:Economy in Brief
Summary
Overall industrial output fell 0.6% during March (+2.0% y/y) following an unrevised 0.1% February uptick. Improved weather caused utility output to fall 5.9%, reversing February's increase. A 0.3% decline in production had been [...]
Overall industrial output fell 0.6% during March (+2.0% y/y) following an unrevised 0.1% February uptick. Improved weather caused utility output to fall 5.9%, reversing February's increase. A 0.3% decline in production had been expected in the Action Economics Forecast Survey. To the upside, manufacturing sector production improved 0.1% (2.4% y/y) after an unrevised 0.2% decline.
A 0.2% (3.2% y/y) increase in business equipment output followed a 0.8% rise. Transit equipment output improved 0.6% (3.8% y/y) and information processing production ticked 0.1% higher (3.7% y/y). Continuing weak, however, was consumer goods production which posted a 0.6% decline (+0.9% y/y). Nondurable goods output fell 1.2% (-0.2% y/y), held back by a 5.0% drop in energy output. Non-energy production gained 0.1% (1.0% y/y) as food product production improved 0.7% (0.3% y/y) and clothing output rose 0.3% (1.1% y/y). Chemical production, however, fell 0.8% (+2.8% y/y). Durable consumer goods production rebounded 1.7% (4.4% y/y) as automotive product production gained 3.0% (5.3% y/y), making up a 2.9% February decline. A 0.5% shortfall (+5.3% y/y) in appliance & furniture production offset the increase. Construction supplies output fell 0.9% (+2.6% y/y) and mining production declined 0.8% (+3.7% y/y), off 3.1% during the last six months.
Within the special aggregate series, high technology industries production rebounded 0.3% (4.0% y/y) following three straight monthly declines. Computers & office equipment output increased 1.1% (1.1% y/y). Communications equipment production was unchanged (6.4% y/y). Factory sector production excluding the high-tech sector ticked 0.1% lower (+2.2% y/y) after being unchanged. Manufacturing production excluding both high-tech and autos slipped 0.1% (+2.1% y/y).
The capacity utilization rate fell to 78.4% and remained below the recovery high of 79.8% reached in November. In the factory sector, the capacity utilization rate held steady at 77.1%, its lowest since October. Total industry capacity rose 3.0% y/y while factory sector capacity increased 2.1% y/y.
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) | Mar | Feb | Jan | Mar Y/Y | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
| Total Output | -0.6 | 0.1 | -0.4 | 2.0 | 4.2 | 2.9 | 3.8 |
| Manufacturing | 0.1 | -0.2 | -0.6 | 2.4 | 3.5 | 2.7 | 4.1 |
| Consumer Goods | -0.6 | 0.6 | 0.1 | 0.9 | 2.8 | 2.4 | 1.7 |
| Business Equipment | 0.2 | 0.8 | -0.8 | 3.3 | 5.2 | 3.6 | 7.5 |
| Construction Supplies | -0.9 | -0.3 | -0.9 | 2.6 | 4.2 | 4.2 | 4.6 |
| Materials | -0.5 | -0.1 | -0.5 | 3.2 | 5.1 | 3.2 | 4.5 |
| Utilities | -5.9 | 5.7 | 3.3 | -4.4 | 1.3 | 2.1 | -2.1 |
| Capacity Utilization (%) | 78.4 | 79.0 | 79.1 | 79.1 | 79.1 | 78.0 | 77.3 |
| Manufacturing | 77.1 | 77.1 | 77.4 | 76.8 | 77.2 | 76.1 | 75.5 |
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.
More Economy in Brief
