Global| Sep 16 2013U.S. Industrial Production Gain is Led by Autos & High-Tech
by:Tom Moeller
|in:Economy in Brief
Summary
Factory sector activity is showing renewed life. Industrial production gained 0.4% during August (2.7% y/y) following an unrevised no-change in July. A 0.5% rise had been expected in the Action Economics survey. Factory sector [...]
Factory sector activity is showing renewed life. Industrial production gained 0.4% during
August (2.7% y/y) following an unrevised no-change in July. A 0.5% rise
had been expected in the Action Economics survey. Factory sector
production increased an even firmer 0.7% (2.7% y/y) following downwardly
revised readings of little-change during the prior two months. Utility
output fell 1.5% (-3.9% y/y).
Consumer goods production nudged up 0.2% last month (2.3% y/y) on the strength of a 5.2% rise (8.4% y/y) in motor vehicle output. Elsewhere, production of furniture and appliances increased 2.0% (5.3% y/y) while production of computers, video & audio equipment rose 0.5% (0.7% y/y). In the nondurables sector, clothing output jumped 1.2% (4.2% y/y). Offsetting all of these gains was a 0.9% decline (+0.1 y/y) in chemical products production and a 0.3% drop (-0.7% y/y) in paper products output.
Business equipment output recovered 1.0% (2.5% y/y). Production of transit equipment production surged 3.6% (4.0% y/y) and made up a July decline. Information processing equipment output gained 1.1% (3.6% y/y). Production of high-tech products rose 1.7% (9.9% y/y) led by a 2.2% rise (12.4% y/y) in semiconductors & related equipment. Working the other way, output of industrial equipment slipped 0.2% (+1.5% y/y). Excluding the output of high tech products & motor vehicles, factory production gained 0.3% (1.8% y/y) during August and recovered a 0.2% July dip.
The capacity utilization rate nudged up to 77.8% from 77.6% in July. In the factory sector, the rate also moved up to 76.1%. The electrical equipment industry is producing at 81.3% of capacity while the motor vehicle industry is at 76.3%. Also, the apparel industry is producing at 72.4% of capacity. Overall industry capacity rose 1.8% y/y last month while factory sector capacity increased 1.5% 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) | Aug | Jul | Jun | Aug Y/Y | 2012 | 2011 | 2010 |
|---|---|---|---|---|---|---|---|
| Total Output | 0.4 | 0.0 | 0.1 | 2.7 | 3.6 | 3.3 | 5.7 |
| Manufacturing | 0.7 | -0.4 | 0.3 | 2.7 | 3.9 | 3.4 | 6.1 |
| Consumer Goods | 0.2 | -0.4 | 0.3 | 2.3 | 1.6 | 1.5 | 1.1 |
| Business Equipment | 1.0 | -1.0 | 0.8 | 2.5 | 8.3 | 5.6 | 8.3 |
| Construction Supplies | 0.4 | 0.4 | 0.7 | 5.3 | 5.2 | 3.0 | 3.6 |
| Materials | 0.4 | 0.6 | -0.1 | 3.3 | 4.1 | 4.7 | 8.8 |
| Utilities | -1.5 | -1.2 | -2.0 | -3.9 | -2.1 | -0.2 | 3.6 |
| Capacity Utilization (%) | 77.8 | 77.6 | 77.8 | 77.2 | 77.6 | 76.5 | 74.0 |
| Manufacturing | 76.1 | 75.7 | 76.1 | 76.0 | 75.8 | 74.0 | 71.3 |
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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