Global| Jun 15 2017U.S. Industrial Production Holds Steady While Factory Output Declines
by:Tom Moeller
|in:Economy in Brief
Summary
Industrial production was unchanged last month (2.1% y/y) following a 1.1% April jump, revised from 1.0%. A 0.1% rise had been expected in the Action Economics Forecast Survey. Manufacturing sector output declined 0.4% (+1.4% y/y) [...]
Industrial production was unchanged last month (2.1% y/y) following a 1.1% April jump, revised from 1.0%. A 0.1% rise had been expected in the Action Economics Forecast Survey. Manufacturing sector output declined 0.4% (+1.4% y/y) after a 1.1% increase, revised from 1.0%. Utilities output increased 0.4% (0.1% y/y). Mining output improved 1.6% (8.3% y/y), the fourth month of strong increase this year.
Production of final products held steady (1.6% y/y) after a 1.6% jump. Consumer goods production rose 0.2% (1.2% y/y) after a 1.7% jump. Durable consumer goods output declined 0.7% (+3.8% y/y) after a 2.4% increase as motor vehicle output fell 1.0% (+5.8% y/y) following a 4.1% increase. Appliance, furniture & carpeting production dropped 0.7% (+0.1% y/y) after a 1.7% jump. Computer, video & audio equipment production improved 0.6% (5.7% y/y) after a 0.4% gain. Nondurable consumer goods production gained 0.4% (0.8% y/y) after a 0.1% uptick. The increase reflected a 1.5% surge (-2.4% y/y) in chemical production. Clothing output increased 0.7% (-4.4% y/y) after six consecutive months of decline. Paper product production fell 0.7% (-3.7% y/y) while food output was off 0.3% (+2.9% y/y).
Business equipment production declined 0.7% (1.3% y/y) following a 1.5% jump. Transit equipment production backpedaled 1.2% (-1.5% y/y) after a 3.0% strengthening. Information processing equipment production eased 0.2% (5.5% y/y) following a 1.3% increase. Production of industrial equipment fell 0.6% (+1.0% y/y) following a 0.9% rise.
Materials production improved 0.1% (3.0% y/y). Durable consumer parts production declined 0.9% (+1.8% y/y) while nondurable goods materials output held steady (1.3% y/y). Production of energy materials increased 1.0% (5.0% y/y), about as it did in the prior three months.
Amongst the special aggregate series, high-technology product production held steady (7.0% y/y) following two months of strong gain. Factory output excluding high technology products decreased 0.4% (+1.3% y/y), the second decline in three months. Factory output excluding both high-tech and motor vehicles fell 0.3% (0.9% y/y), following a 0.9% gain.
Capacity utilization eased to 76.6% while factory sector utilization declined to 75.5%. Factory sector capacity rose a steady 0.7% 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) | May | Apr | Mar | May Y/Y | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|
| Total Output | 0.0 | 1.1 | 0.1 | 2.1 | -1.2 | -0.7 | 3.1 |
| Manufacturing | -0.4 | 1.1 | -0.8 | 1.4 | -0.0 | 0.1 | 1.2 |
| Consumer Goods | 0.2 | 1.7 | 0.3 | 1.2 | 0.6 | 2.3 | 0.8 |
| Business Equipment | -0.7 | 1.5 | -0.3 | 1.3 | -1.8 | -0.9 | 1.9 |
| Construction Supplies | -0.3 | 0.7 | -1.1 | 3.3 | 1.3 | 0.5 | 3.4 |
| Materials | 0.1 | 0.9 | 0.0 | 3.0 | -2.3 | -1.4 | 5.1 |
| Utilities | 0.4 | 0.7 | 8.2 | 0.1 | -0.3 | -0.7 | 1.4 |
| Mining | 1.6 | 1.5 | -0.6 | 8.3 | -9.1 | -4.3 | 10.7 |
| Capacity Utilization (%) | 76.6 | 76.7 | 75.9 | 75.6 | 75.7 | 76.8 | 78.6 |
| Manufacturing | 75.5 | 75.8 | 75.0 | 75.0 | 75.1 | 75.5 | 75.4 |
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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