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Indicator Digest

Industrial Production
Measures all industrial production.

Main Indicator: Industrial Production

Most Recent Release

February
17th, 2010
Actual Forecast Previous Revised Form
0.9% 0.8% 0.7% 0.6%

For January
Provided by: Federal Reserve

Capacity Utilization: 72.6%, forecast 72.6%, pr. 71.9% (Dec),
71.3% (Nov), 70.7% (Oct), 70.5% (Sep), 69.6% (Aug), 68.5% (Jul),
68.1% (Jun), 68.3% (May), 69.1% (Apr), 69.3% (Mar), 70.9% (Feb)

Table of Past Data

5/156/167/158/149/1610/1611/1712/151/152/17
Actual-0.5%-1.1%-0.4%0.5%0.8%0.7%0.1%0.8%0.6%0.9%
Forecast-0.5%-0.7% -0.6%0.4%0.7%0.1%0.4%0.6%0.6%0.8%
Previous-1.7%-0.7%-1.2%-0.4%1.0%0.8%0.6%0.0%0.6%0.7%
Revised From-1.5%-0.5%-1.1%N/A0.5%N/A0.7%0.1%0.8%0.6%

Secondary Indicator: Capacity Utilization Rate

Most Recent Release

March
15th, 2010
Actual Forecast Previous Revised Form
72.7% 72.7% 72.6% N/A

Table of Past Data

6/167/158/149/1610/1611/1712/151/152/173/15
Actual68.3%68.0%68.5%69.6%70.5%70.7%71.3%72.0%72.6%72.7%
Forecast68.5%67.8%68.2%69.1%69.8%70.9%71.1%72.0%72.6%72.7%
Previous69.0%68.2%68.1%69.0%69.6%70.5%70.7%71.3%72.0%72.6%
Revised From69.1%68.3%N/A68.5%N/AN/AN/AN/AN/AN/A

Past Releases

Capacity Utilization Rate
February
17th, 2010
Actual Forecast Previous Revised Form
72.6% 72.6% 72.0% N/A
Industrial Production
January
15th, 2010
Actual Forecast Previous Revised Form
0.6% 0.6% 0.6% 0.8%

For December
Provided by: Federal Reserve

Capacity Utilization: 72.0%, pr. 71.3% (Nov), 70.7% (Oct),
70.5% (Sep), 69.6% (Aug), 68.5% (Jul) , 68.1% (Jun), 68.3% (May),
69.1% (Apr), 69.3% (Mar), 70.9% (Feb), 72.0% (Jan), 73.6% (Dec)

Industrial production grew at 0.6% in the month of December, which followed a similar gain in November. The rise in output was led by a boost in utility output (+5.9%) stemming from colder than normal weather during the month. The rate at which industries used their capacities rose to 72.0% from 71.3% in November. While utilities surged, manufacturing output slid 0.1%. Industrial production is being helped by companies that ran down inventories during 2009. They have begun rebuilding those depleted stockpiles which is showing up in a rebound in the manufacturing sector. On Thursday, we saw that US business inventories rose in November.

Capacity Utilization Rate
January
15th, 2010
Actual Forecast Previous Revised Form
72.0% 72.0% 71.3% N/A
Industrial Production
December
15th, 2009
Actual Forecast Previous Revised Form
0.8% 0.6% 0.0% 0.1%

For November
Provided by: Federal Reserve

Capacity Utilization: 71.3%, pr. 70.7% (Oct), 70.5% (Sep),
69.6% (Aug), 68.5% (Jul) , 68.1% (Jun), 68.3% (May), 69.1% (Apr),
69.3% (Mar), 70.9% (Feb), 72.0% (Jan), 73.6% (Dec), 75.4% (Nov)

US industrial production rose more than expected in November, climbing 0.8 following a flat reading in October. The increase was broad-based as manufacturing production rose by 1.1%, with cars and parts output up 1.8%. Excluding autos, production in all other industries went up 1.1%. Machinery production increased 0.6%, business equipment rose 0.4%, construction supplies climbed 1.6%, output at miners rose 2.1%, and production of appliances and furniture was up 3.3%. The measure of factories in use rose to 71.3%, which continues a steady increase in capacity utilization since the low of 68.1% we saw in June. 

The report implies that companies might be rebuilding their inventories following a rapid liquidation of stockpiles during the recession. The Empire manufacturing index may dampen some expectations regarding the manufacturing sector for December, though it is just one survey and is regional in nature. 

Capacity Utilization Rate
December
15th, 2009
Actual Forecast Previous Revised Form
71.3% 71.1% 70.7% N/A
Industrial Production
November
17th, 2009
Actual Forecast Previous Revised Form
0.1% 0.4% 0.6% 0.7%

For October
Provided by: Federal Reserve

Capacity Utilization: 70.7%, pr. 70.5% (Sep), 69.6% (Aug),
68.5% (Jul) , 68.1% (Jun), 68.3% (May), 69.1% (Apr), 69.3% (Mar),
70.9% (Feb), 72.0% (Jan), 73.6% (Dec), 75.4% (Nov), 76.4% (Oct)

US industrial production disappointed forecasts, rising 0.1% for the month of October, after having averaged monthly gains of about 0.9% over the previous three months. Manufacturing production fell for the first time in four months, and the only area of growth in the indicator was a 1.6% increase in the output of utilities. The drop-off in manufacturing came as auto production slackened following the end of trade-in incentives. Motor vehicle and parts production fell 1.7% following an 8.1% increase the prior month. Production of consumer goods which includes automobiles, furniture and electronics dropped 1.4%. 

Companies are likely not going to place too many orders as they gauge the strength of the recovery and see that consumer spending may be crimped by unemployment, which is at a 26-year high. Still, some see a recovery in fits and starts, so October may be a down month following the increase in output in the three months of the 3rd quarter. The proportion of plants in use rose to 70.7% from 70.5%, which continues the increase in the capacity utilization rate that started in July. 

Capacity Utilization Rate
November
17th, 2009
Actual Forecast Previous Revised Form
70.7% 70.9% 70.5% N/A
Industrial Production
October
16th, 2009
Actual Forecast Previous Revised Form
0.7% 0.1% 0.8% N/A

For September
Provided by: Federal Reserve

Capacity Utilization: 70.5%, pr. 69.6% (Aug), 68.5% (Jul) ,
68.1% (Jun), 68.3% (May), 69.1% (Apr), 69.3% (Mar), 70.9% (Feb),
72.0% (Jan), 73.6% (Dec), 75.4% (Nov), 76.4% (Oct), 76.4% (Sep)

Capacity Utilization Rate
October
16th, 2009
Actual Forecast Previous Revised Form
70.5% 69.8% 69.6% N/A
Industrial Production
September
16th, 2009
Actual Forecast Previous Revised Form
0.8% 0.7% 1.0% 0.5%

For August
Provided by: Federal Reserve

Capacity Utilization: 69.6%, pr. 68.5% (Jul) , 68.1% R+ (Jun),
68.3% (May), 69.1% (Apr), 69.3% (Mar), 70.9% (Feb), 72.0% (Jan),
73.6% (Dec), 75.4% (Nov), 76.4% (Oct), 76.4% (Sep), 78.7% (Aug),
79.9% (Jul), 79.8% (Jun)

Industrial production in the US expanded for the second month in a row in August, with output up 0.8% following an upwardly revised 1.0% gain in July. The data adds evidence that the manufacturing sector is seeing a rebound, one that may help the lift the rest of the economy out of the technical definition of a recession in the third quarter. Manufacturing makes up about 12% of the economy. Companies have cut their inventories, and therefore are placing new orders which is ramping up output production. The proportion of factories in use rose to 69.6%, the highest level since February. 

Capacity Utilization Rate
September
16th, 2009
Actual Forecast Previous Revised Form
69.6% 69.1% 69.0% 68.5%
Industrial Production
August
14th, 2009
Actual Forecast Previous Revised Form
0.5% 0.4% -0.4% N/A

For July
Provided by: Federal Reserve

Capacity Utilization: 68.5%, pr. 68.1% R+ (Jun), 68.3% (May),
69.1% (Apr), 69.3% (Mar), 70.9% (Feb), 72.0% (Jan), 73.6% (Dec),
75.4% (Nov), 76.4% (Oct), 76.4% (Sep), 78.7% (Aug), 79.9% (Jul),
79.8% (Jun)

US industrial production rose 0.5% in July, the first increase in output in 9 months. The jump in production was facilitated by auto makers (GM and Chrysler) reopening plants shut down during their terms in bankruptcy, and the demand created by the government's cash for clunkers program. The utilization capacity rate, which measures the proportion of factories in use, increased from its lowest level since records began in 1967. Companies have heavily drawn down their inventories the past two quarters, which sets the stage for a rebound in growth as they place new orders with manufacturers to refill their stockpiles.

Capacity Utilization Rate
August
14th, 2009
Actual Forecast Previous Revised Form
68.5% 68.2% 68.1% N/A
Industrial Production
July
15th, 2009
Actual Forecast Previous Revised Form
-0.4% -0.6% -1.2% -1.1%

For June
Provided by: Federal Reserve

Capacity Utilization: 68.0%, pr. 68.3% (May), 69.1% (Apr),
69.3% (Mar), 70.9% (Feb), 72.0% (Jan), 73.6% (Dec), 75.4% (Nov),
76.4% (Oct), 76.4% (Sep), 78.7% (Aug), 79.9% (Jul), 79.8% (Jun)

Industrial output declined 0.4% in June, a figure that was better than expectations, but is still the 8th straight month, and the 17th month out of the last 18, that production has been down. The figure is much smaller than May's revised 1.2% drop. Output is down as companies continue to draw down inventories during the downturn, and consumers increase savings. Over the last 12 months, production is 13.6% lower. Manufacturing production dropped by 0.6%, output in the mining industry fell 0.5%, and utilities saw production rise 0.8%. 

Capacity Utilization Rate
July
15th, 2009
Actual Forecast Previous Revised Form
68.0% 67.8% 68.2% 68.3%
Industrial Production
June
16th, 2009
Actual Forecast Previous Revised Form
-1.1% -0.7% -0.7% -0.5%

For May
Provided by: Federal Reserve

Capacity Utilization: 68.3%, pr. 69.1% (Apr) 69.3% (Mar), 70.9% (Feb),
72.0% (Jan), 73.6% (Dec), 75.4% (Nov), 76.4% (Oct), 76.4% (Sep),
78.7% (Aug), 79.9% (Jul), 79.8% (Jun)

US industrial production fell more than expected in May, sliding 1.1% on the month.  Its the 16th month of negative output out of the last 17 months. The data points to a continuation of the slump in manufacturing as consumer spending and business investment remains pressured. The amount of factories currently in use fell to a record low 68.3%. Output will continue to slump as the bankruptcies of Chrysler and General Motors filter further through the economy. In fact, motor vehicle and parts production slumped 7.9% a major part of the overall decline. 

Capacity Utilization Rate
June
16th, 2009
Actual Forecast Previous Revised Form
68.3% 68.5% 69.0% 69.1%
Industrial Production
May
15th, 2009
Actual Forecast Previous Revised Form
-0.5% -0.5% -1.7% -1.5%

For April
Provided by: Federal Reserve

Capacity Utilization: 69.1%, forecast 68.9%, pr. 69.3% (Mar), 70.9% (Feb),
72.0% (Jan), 73.6% (Dec), 75.4% (Nov), 76.4% (Oct), 76.4% (Sep),
78.7% (Aug), 79.9% (Jul), 79.8% (Jun)

Industrial output fell 0.5% in April, which was the slowest pace of decline in six months. It's a sign that the manufacturing sector is perhaps seeing a bottom, as companies cut stockpiles at the fastest pace on record in the first three months of the year, and may be ready to start placing orders again. The amount of factories in use dropped to a record low of 69.1%, though that figure was slightly above the forecast. The fall in April was led by weaker demand for business equipment such as computers, and construction materials. Output of motor vehicles and parts climbed 1.4%, but that figure may soon reverse as US car companies prepare to shut down plants and reduce inventories.