Global| Jul 15 2016U.S. Industrial Production Rebounds
by:Tom Moeller
|in:Economy in Brief
Summary
Industrial output increased 0.6% (-0.7% y/y) during June following a 0.3% May fall, revised from -0.4%. A 0.2% rise in output had been expected in the Action Economics Forecast Survey. Factory sector production improved 0.4% last [...]
Industrial output increased 0.6% (-0.7% y/y) during June following a 0.3% May fall, revised from -0.4%. A 0.2% rise in output had been expected in the Action Economics Forecast Survey.
Factory sector production improved 0.4% last month (0.4% y/y) and made up a 0.3% fall. Consumer goods production jumped 1.1% (1.6% y/y) as motor vehicle output & parts output rebounded 5.9% (7.8% y/y) after a 4.3% decline. Machinery output increased 1.1% (-2.4% y/y). Electrical equipment and appliance production gained 1.5% (1.3% y/y) and furniture production increased 0.5% (+0.3% y/y). These gains were offset by a 0.5% decline (+1.8% y/y) in computer & electronic component production and a 0.3% easing (-3.4% y/y) in primary metals output.
In the nondurable goods sector, chemical output retreated 0.6% (+0.4% y/y) while paper product production fell 0.4% (-1.9% y/y). Apparel output declined 0.6% (-10.0% y/y), off for the third straight month, but petroleum & coal production rebounded 0.7% (1.1% y/y).
A 2.4% rise in utility output (0.5% y/y) reflected a 3.4% rise in electric power generation (1.3% y/y), but natural gas production decline 6.9% (-6.6% y/y). Mining sector production improved 0.2% (-10.5% y/y).
In the subcategory groupings, output of high technology products eased 0.3% (+3.6% y/y) as computer & office equipment production gained 0.3% (2.8% y/y). Communications equipment output improved 0.2% (11.7% y/y). Overall factory sector production excluding the high-tech & motor vehicle sectors eased 0.3% (-0.2% y/y), down for the fifth month this year.
Capacity utilization declined to 75.4 from 74.9%. That remained lower than 78.9% in November 2014. Factory sector utilization improved to 75.1%, but was down from the 2014 high of 76.3%. Industry capacity rose 0.7% y/y while factory sector capacity also improved 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) | Jun | May | Apr | Jun Y/Y | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
| Total Output | 0.6 | -0.3 | 0.5 | -0.7 | 0.3 | 2.9 | 1.9 |
| Manufacturing | 0.4 | -0.3 | 0.1 | 0.4 | 0.8 | 1.3 | 0.9 |
| Consumer Goods | 1.1 | -0.8 | 1.3 | 1.6 | 1.4 | 0.7 | 0.7 |
| Business Equipment | 0.7 | -0.3 | 1.1 | -0.5 | 0.7 | 2.4 | -0.2 |
| Construction Supplies | -0.8 | -0.5 | 0.2 | 0.0 | 1.5 | 3.7 | 3.0 |
| Materials | 0.6 | 0.0 | -0.1 | -1.9 | 0.5 | 4.7 | 3.3 |
| Utilities | 2.4 | -0.9 | 6.2 | 0.5 | -0.7 | 1.3 | 2.3 |
| Mining | 0.2 | 0.2 | -2.8 | -10.5 | -1.8 | 11.0 | 6.5 |
| Capacity Utilization (%) | 75.4 | 74.9 | 75.2 | 76.4 | 76.7 | 78.2 | 76.9 |
| Manufacturing | 75.1 | 74.8 | 75.1 | 75.3 | 75.5 | 75.4 | 74.5 |
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.
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