U.S. Industrial Production Improves in November
by:Tom Moeller
|in:Economy in Brief
Summary
- Factory output increase is led by strong gain in autos.
- Other industry performance is mixed.
- Capacity utilization edges higher.
Total industrial production increased 0.2% (-0.4% y/y) during November following a 0.9% October decline, revised from -0.6%, and an unrevised 0.1% September improvement, according to the Federal Reserve Board. The November rise compared to expectations for a 0.3% gain in the Action Economics Forecast Survey.
By industry groups, manufacturing production rose 0.3% (-0.8% y/y) last month after a 0.8% October decline. Durable goods production rose 1.2% (0.4% y/y) following a 1.5% decline. Motor vehicle & parts production jumped 7.1% (2.4% y/y) and machinery output rose 0.7% (-4.4% y/y). Computer & electronics output rose 0.9% (5.3% y/y) but production of electrical equipment, appliances & components eased 0.2% (+0.9% y/y). Furniture output slipped 0.1% (-7.9% y/y).
Nondurable goods production fell 0.5% (-2.0% y/y) in November after a 0.1% October easing. Textiles & product mills production fell 1.9% (-2.6% y/y) while apparel production weakened 3.4% (-13.2% y/y). Chemical output fell 0.3% (+0.2% y/y).
Mining activity grew 0.3% (2.3% y/y) in November following a 1.1% decline while electric & gas utilities output fell 0.4% (-1.0% y/y).
By market groups, consumer goods output edged 0.1% higher (-1.6% y/y) in November after falling 0.9% in October. The rise reflected a 3.5% increase (0.1% y/y) in durable consumer goods output and a 0.8% decline (-2.0% y/y) in nondurable consumer goods production. Business equipment output rose 0.9% (-1.5% y/y) after declining 0.8% in October. Construction supplies production held steady (-2.3% y/y) while materials production rose 0.3% (0.9% y/y).
In special classifications, factory output of selected high-tech industries strengthened 1.7% in November (14.4% y/y) for the second straight month. Manufacturing production excluding selected high-tech industries as well as motor vehicles & parts fell 0.2% (-1.5% y/y).
Capacity utilization edged higher to 78.8% in November from 78.7% in October. A rate of 79.1% had been expected. Manufacturing capacity utilization rose to 77.2% in November from 77.0% in October.
Industrial production and capacity are located in Haver's USECON database. Additional detail on production and capacity utilization can be found in the IP database. The expectations figures come from the AS1REPNA database.
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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