Global| May 16 2017U.S. Industrial Production Increases; Factory Output Strengthens
by:Tom Moeller
|in:Economy in Brief
Summary
Industrial production increased 1.0% (2.1% y/y) during April following a 0.4% March gain, revised from 0.5%. A 0.4% increase had been expected in the Action Economics Forecast Survey. Manufacturing sector output also rose 1.0% (1.7% [...]
Industrial production increased 1.0% (2.1% y/y) during April following a 0.4% March gain, revised from 0.5%. A 0.4% increase had been expected in the Action Economics Forecast Survey. Manufacturing sector output also rose 1.0% (1.7% y/y) after an unrevised 0.4% decline. Utilities output increased 0.7% (-0.5% y/y). Mining output improved 1.2% (7.3% y/y), the third month of strong increase this year.
Production of final products strengthened 1.5% (1.8% y/y), the strongest increase since November 2014. Durable consumer goods production increased 3.0% (3.4% y/y) after a 2.2% fall as motor vehicle output jumped 5.1% (4.7% y/y) following a 3.7% decline. Appliance, furniture & carpeting production increased 1.8% (1.0% y/y) after two months of sharp decline. Computer, video & audio equipment production declined 1.3% (+2.2% y/y), the third month of substantial decline this year. Nondurable consumer goods production gained 1.1% (0.8% y/y) after a 2.5% jump. The increase reflected a 1.5% surge (2.7% y/y) in food & tobacco production. Paper product output increased 0.7% (-3.1% y/y) while chemical production rose 0.6% (-1.5% y/y). Clothing output eased 0.3% (-5.2% y/y), down for the sixth straight month.
Business equipment production surged 1.2% (1.3% y/y) after three months of little change. Transit equipment production jumped 2.0% (-2.0% y/y) and made up the prior month's decline. Information processing equipment production increased 0.7% (5.5% y/y) following a 1.5% strengthening.
Materials production increased 0.8% (2.8% y/y) prompted by a 1.6% recovery (0.6% y/y) in textile product output, following sharp declines in three of the prior four months. Production of energy materials jumped 1.2% (4.3% y/y) about as it did in the prior two months. Durable consumer parts production increased 2.1% (3.6% y/y). Nondurable goods materials gained 0.5% (1.7% y/y) after two months of decline.
Amongst the special aggregate series, high-technology product production eased 0.1% (+5.9% y/y), off for the third month in the last four. Factory output excluding high technology products increased 1.0% (1.6% y/y). Factory output excluding both high-tech and motor vehicles improved 0.7% (1.4% y/y) following a 0.2% dip.
Capacity utilization increased to 76.7%, its highest point since August 2015. Factory sector utilization surged 75.9%, the highest level since December 2014. 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) | Apr | Mar | Feb | Apr Y/Y | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|
| Total Output | 1.0 | 0.4 | 0.2 | 2.1 | -1.2 | -0.7 | 3.1 |
| Manufacturing | 1.0 | -0.4 | 0.3 | 1.7 | -0.0 | 0.1 | 1.2 |
| Consumer Goods | 1.5 | 1.4 | -1.1 | 1.3 | 0.6 | 2.3 | 0.8 |
| Business Equipment | 1.2 | -0.3 | 0.0 | 1.3 | -1.8 | -0.9 | 1.9 |
| Construction Supplies | -0.1 | -1.2 | 1.7 | 2.2 | 1.3 | 0.5 | 3.4 |
| Materials | 0.8 | 0.0 | 0.8 | 2.8 | -2.3 | -1.4 | 5.1 |
| Utilities | 0.7 | 8.2 | -5.2 | -0.5 | -0.3 | -0.7 | 1.4 |
| Mining | 1.2 | -0.4 | 3.8 | 7.3 | -9.1 | -4.3 | 10.7 |
| Capacity Utilization (%) | 76.7 | 76.1 | 75.8 | 75.6 | 75.7 | 76.8 | 78.6 |
| Manufacturing | 75.9 | 75.2 | 75.6 | 75.1 | 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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