Global| Nov 15 2013U.S. Industrial Production Total Slips But Factory Output Gains
by:Tom Moeller
|in:Economy in Brief
Summary
Industrial production slipped 0.1% during last month (+3.3% y/y) following an unrevised 0.6% September increase. A 0.2% gain had been expected in the Action Economics survey. A 1.1% pullback (-0.8% y/y) in utility output held back [...]
Industrial production slipped 0.1% during last month (+3.3% y/y) following an unrevised 0.6% September increase. A 0.2% gain had been expected in the Action Economics survey. A 1.1% pullback (-0.8% y/y) in utility output held back total production last month. Factory output, however, worked 0.3% higher (3.3% y/y). A 0.5% gain (3.3% y/y) in defense & space equipment production provided much of the strength to the manufacturing output total last month.
Total output was also held back by a 0.1% slip (+2.5% y/y) in the production of consumer goods. Production of automotive products fell 1.0% (11.1% y/y). That was offset by a 2.6% gain (8.2% y/y) in apparel output and a 1.4% rise (0.2% y/y) in computers, video & audio equipment production. Production of business equipment also gained 0.2% (5.2% y/y). Production of construction supplies added 0.3% (6.6% y/y) but materials output fell 0.4% (+3.2% y/y).
The capacity utilization rate slipped to 78.1% led by the decline in utilities to 78.3%. In the factory sector, the utilization rate ticked higher to 76.2%. The electrical equipment industry is producing at 80.8% of capacity while motor vehicle businesses are at 75.9%. Also, the apparel industry is producing at 74.3% of capacity. Overall industry capacity rose 1.7% y/y last month while factory sector capacity increased 1.6% 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) | Oct | Sep | Aug | Oct Y/Y | 2012 | 2011 | 2010 |
|---|---|---|---|---|---|---|---|
| Total Output | -0.1 | 0.6 | 0.5 | 3.3 | 3.6 | 3.3 | 5.7 |
| Manufacturing | 0.3 | -0.1 | 0.6 | 3.3 | 3.9 | 3.4 | 6.1 |
| Consumer Goods | -0.1 | 0.8 | 0.3 | 2.5 | 1.6 | 1.5 | 1.1 |
| Business Equipment | 0.2 | 1.1 | 0.7 | 5.2 | 8.3 | 5.6 | 8.3 |
| Construction Supplies | 0.3 | 1.0 | 0.4 | 6.6 | 5.2 | 3.0 | 3.6 |
| Materials | -0.4 | 0.4 | 0.5 | 3.2 | 4.1 | 4.7 | 8.8 |
| Utilities | -1.1 | 4.3 | -0.9 | -0.8 | -2.1 | -0.2 | 3.6 |
| Capacity Utilization (%) | 78.1 | 78.3 | 77.9 | 77.0 | 77.6 | 76.5 | 74.0 |
| Manufacturing | 76.2 | 76.1 | 76.1 | 74.9 | 75.8 | 74.0 | 71.3 |
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.
