Global| Dec 15 2014U.S. Industrial Production Surges by Most Since May 2010
by:Tom Moeller
|in:Economy in Brief
Summary
Industrial production jumped 1.3% last month (5.2% y/y) following a 0.1% uptick, revised from -0.1%. Manufacturing sector production surged 1.1% (4.7% y/y) following an upwardly revised 0.4% rise, last month reported as 0.2%. Three- [...]
Industrial production jumped 1.3% last month (5.2% y/y) following a 0.1% uptick, revised from -0.1%. Manufacturing sector production surged 1.1% (4.7% y/y) following an upwardly revised 0.4% rise, last month reported as 0.2%. Three-month growth in overall production surged to 9.5% (AR). A 0.7% gain in total production was expected in the Action Economics Forecast Survey.
Consumer goods production increased 2.5% (4.1% y/y) fueled by a 5.1% rise (7.7% y/y) in motor vehicles & parts which followed a 0.4% dip. Production of machinery gained 1.0% (8.2% y/y) after a 2.9% rise and electrical machinery output jumped 0.8% (2.9% y/y), making up a 0.5% decline. Computer production rose 0.5% (5.5% y/y) following a 0.9% increase while furniture production remained unchanged (7.8% y/y) after a 0.4% rise. In the nondurable goods sector, apparel production jumped 2.3% (2.9% y/y) after no change and chemical production gained 0.9% (5.4% y/y) after a 0.7% rise. Textile production increased 0.8% (2.8% y/y), about the same as in October, and petroleum output improved 2.1% (4.5% y/y) after a 0.2% rise. Business equipment production rose 1.2% (6.5% y/y) following a 0.9% gain. Output of transit equipment increased 1.6% (5.8% y/y) after a 1.1% decline.
Within the special aggregate series, high technology industries posted a 1.1% production gain (7.1% y/y) following a 0.7% increase. It was helped by a 2.6% rise (0.4% y/y) in computers & office equipment after a 0.6% drop. Factory sector production excluding the high-tech sector rose 1.1% (4.7% y/y) following a 0.4% increase. Manufacturing production excluding both high-tech and autos improved 0.8% (4.5% y/y) after a 0.5% gain.
The capacity utilization rate increased to 80.1%, the high since 80.5% averaged in 2007. In the factory sector, the capacity utilization rate jumped to an expansion high of 79.2. Total industry capacity rose an improved 3.1% y/y while factory sector capacity increased 2.2% 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.
Measuring and Financing Infrastructure Investments from the Federal Reserve Bank of Chicago can be found here.
| Industrial Production (SA, % Change) | Nov | Oct | Sep | Nov Y/Y | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Total Output | 1.3 | 0.1 | 0.9 | 5.2 | 2.9 | 3.8 | 3.3 |
| Manufacturing | 1.1 | 0.4 | 0.4 | 4.7 | 2.7 | 4.1 | 3.3 |
| Consumer Goods | 2.5 | 0.0 | 0.8 | 4.1 | 2.4 | 1.7 | 1.5 |
| Business Equipment | 1.2 | 0.9 | -0.3 | 6.5 | 3.6 | 7.5 | 5.6 |
| Construction Supplies | 0.6 | 0.2 | 0.6 | 4.7 | 4.2 | 4.6 | 3.0 |
| Materials | 0.8 | 0.0 | 1.1 | 6.1 | 3.2 | 4.5 | 4.7 |
| Utilities | 5.1 | -0.8 | 4.3 | 1.8 | 2.1 | -2.1 | -0.2 |
| Capacity Utilization (%) | 80.1 | 79.3 | 79.5 | 78.5 | 78.0 | 77.3 | 76.3 |
| Manufacturing | 78.4 | 77.6 | 77.4 | 76.4 | 76.1 | 75.5 | 73.9 |
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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