U.S. INDUSTRIAL PRODUCTION UP 0.6%

U.S. FRB - Industrial production rose 0.6 percent in August after declining 0.1 percent in July. Manufacturing production increased 0.5 percent, more than reversing its decrease in July. Factory output has increased 0.2 percent per month over the past four months after having decreased 0.5 percent per month during the first four months of the year. In August, the indexes for utilities and mining moved up 0.6 percent and 1.4 percent, respectively. At 109.9 percent of its 2012 average, total industrial production was 0.4 percent higher in August than it was a year earlier. Capacity utilization for the industrial sector increased 0.4 percentage point in August to 77.9 percent, a rate that is 1.9 percentage points below its long-run (1972–2018) average.

Market Groups

All of the major market groups recorded gains in August. The index for consumer goods moved up 0.2 percent, as an increase in nondurables was only partly offset by a decline in durables. The indexes for business equipment, defense and space equipment, construction supplies, business supplies, and materials all increased at rates between 1/2 percent and 1 percent. Materials posted an increase of 0.9 percent, reflecting gains for nondurables, durables, and energy materials.

Industry Groups

Manufacturing output rose 0.5 percent in August, as the indexes for durables and for nondurables increased while the index for other manufacturing (publishing and logging) edged down. Production rose for most major categories within durable manufacturing. The largest gains were recorded by machinery, primary metals, and nonmetallic mineral products; the only sizable decline was recorded by motor vehicles and parts. The gain of 0.5 percent for nondurables reflected strength in plastics and rubber products and in chemicals; the other major nondurable goods industries registered either declines or very small increases.

Mining output increased 1.4 percent in August after having fallen a similar amount in July; output in July had been suppressed by a cutback in oil extraction in the Gulf of Mexico due to Hurricane Barry. The output of utilities increased 0.6 percent, with gains in both electric and natural gas utilities.

Capacity utilization for manufacturing increased 0.3 percentage point to 75.7 percent in August, a rate that is 2.6 percentage points below its long-run average. The operating rates for both durable and nondurable manufacturing increased 0.3 percentage point. The utilization rate for mining moved up to 90.5 percent, a bit lower than its average in the three months before Hurricane Barry but 3.4 percentage points higher than its long-run average. The rate for utilities increased 0.3 percentage point but remained well below its long-run average.

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