
U.S. Industrial Production Slips With Less Utility Output But Factory Output Increases
by:Tom Moeller
|in:Economy in Brief
Summary
U.S. industrial production slipped 0.1% in February after an upwardly revised 0.3% January increase, initially reported as -0.1%. The latest decline disappointed Consensus expectations for a 0.6% gain according to Action Economics. A [...]
U.S. industrial production slipped 0.1% in
February after an upwardly revised 0.3% January increase, initially
reported as -0.1%. The latest decline disappointed Consensus expectations
for a 0.6% gain according to Action Economics. A return to more normal,
winter temperatures lowered utility output by 4.5% last month and caused the decline in
overall industrial production.
Factory sector output rose 0.4% after a 0.9% January jump, which was roughly double the initial estimate. Earlier strength in consumer goods reversed as indicated by the 0.6% February decline. The drop reflected a 1.3% decline in nondurable goods output (+1.5% y/y) that was led by a 5.2% decline in energy products (-2.2% y/y) production. Apparel output rose 1.3% (5.0% y/y). Output of durable consumer goods rose 2.4% (8.2% y/y). Production of business equipment rose 0.5% (14.5% y/y) with the strength in capital spending. Output of computers & electronic components increased 0.6% (16.1% y/y).
Capacity utilization overall slipped to 76.3% but remained up sharply from the recession low of 68.2%. In manufacturing alone, utilization ran at 74.3%, up from 73.5% in December and up from the recession low of 65.4%.
Industrial production and capacity data are included in Haver's USECON database, with additional detail in the IP database. The IP database contains figures with more decimal precision and includes extensive lists of "relative importance" numbers for several breakdowns of production by industry and market group. The expectations figure is in the AS1REPNA database.
Industrial Production (SA, % Change) | Feb | Jan | Dec | Feb Y/Y | 2010 | 2009 | 2008 |
---|---|---|---|---|---|---|---|
Total Output | -0.1 | 0.3 | 1.3 | 5.5 | 5.7 | -9.3 | -3.3 |
Manufacturing | 0.4 | 0.9 | 1.1 | 6.9 | 6.1 | -11.1 | -4.5 |
Consumer Goods | -0.6 | 0.2 | 1.6 | 2.9 | 4.6 | -5.8 | -4.2 |
Business Equipment | 0.5 | 1.8 | 1.4 | 14.5 | 8.1 | -12.2 | -1.5 |
Construction Supplies | 0.0 | 0.4 | -0.1 | 7.9 | 4.0 | -16.7 | -9.5 |
Materials | 0.0 | 0.2 | 1.5 | 5.9 | 6.9 | -9.7 | -2.7 |
Utilities | -4.5 | -2.1 | 4.8 | -4.2 | 3.5 | -2.6 | -0.1 |
Capacity Utilization (%) | 76.3 | 76.4 | 76.3 | 72.4 | 74.3 | 70.0 | 77.9 |
Manufacturing | 74.3 | 74.1 | 73.5 | 69.7 | 71.7 | 67.2 | 75.0 |
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.