Global| Jun 16 2010U.S. Industrial Production Is Strong Again
by:Tom Moeller
|in:Economy in Brief
Summary
The recovery in industrial output due to improved final demand and inventory replenishment continued last month. Overall production rose 1.2% after a little revised 0.7% increase during April. It's up at an 8.1% annual rate so far [...]
The recovery in industrial output due to improved
final demand and inventory replenishment continued last month. Overall
production rose 1.2% after a little revised 0.7% increase during April.
It's up at an 8.1% annual rate so far this year. These gains understate
the degree of improvement following last year's recession. In the
factory sector alone output rose 0.9% during the last two months and it
has risen at a 9.5% rate so far this year.
Strength in output last month was across-the-board amongst major industry groupings. In individual industries, output of motor vehicles rose 5.5% last month and by more than one-third y/y. Output of computers also posted a firm 1.4% increase (14.3% y/y) while machinery output rose 1.9% (13.3% y/y).
Output of appliances and furniture slipped after a strong April (+3.6% y/y). The level of production was one-third below the 2005 peak. Apparel output rose just 0.5% last month (7.9% y/y) and remained off by two-thirds from 1994 as production has moved out of the country.
Capacity utilization rose further to 74.7%, its highest level since November 2008. In the factory sector alone, utilization rose to 71.5%, the highest level since November 2008 and up from the 2009 low of 65.1%.
The industrial production data are available in Haver's USECON database.
| Industrial Production (SA,%) | May | April | March | May y/y | 2009 | 2008 | 2007 |
|---|---|---|---|---|---|---|---|
| Total Output | 1.2 | 0.7 | 0.3 | 7.6 | -9.7 | -2.2 | 1.5 |
| Manufacturing | 0.9 | 0.9 | 1.2 | 7.9 | -11.3 | -3.2 | 1.4 |
| Consumer Goods | 1.1 | 0.0 | 0.4 | 6.3 | -5.2 | -2.6 | 0.9 |
| Business Equipment | 1.3 | 1.7 | 1.1 | 10.1 | -12.4 | -1.1 | 2.7 |
| Construction Supplies | 0.7 | 3.0 | 2.4 | 3.9 | -17.8 | -6.3 | -2.0 |
| Materials | 1.4 | 0.8 | -0.1 | 9.2 | -10.9 | -1.9 | 2.0 |
| Utilities | 4.8 | -1.3 | -6.2 | 4.2 | -2.5 | 0.3 | 3.4 |
| Capacity Utilization (%) | 74.7 | 73.7 | 73.1 | 68.5(May '09) | 70.1 | 77.5 | 80.6 |
| Factory Utilization | 71.5 | 70.8 | 70.1 | 65.3 | 66.8 | 75.1 | 79.0 |
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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