U.S. INDUSTRIAL PRODUCTION UP 0.6%

U.S. FRB - March 17, 2020 - Industrial production rose 0.6 percent in February after falling 0.5 percent in January. Manufacturing output edged up 0.1 percent in February; excluding a large gain for motor vehicles and parts and a large drop for civilian aircraft, factory output was unchanged. The index for mining declined 1.5 percent, but the index for utilities jumped 7.1 percent, as temperatures returned to more typical levels following an unseasonably warm January. At 109.6 percent of its 2012 average, the level of total industrial production in February was unchanged from a year earlier. Capacity utilization for the industrial sector increased 0.4 percentage point in February to 77.0 percent, a rate that is 2.8 percentage points below its long-run (1972–2019) average.

Market Groups

The index for consumer goods rose 1.7 percent in February. Automotive products and energy products posted sizable gains, and several other categories also recorded substantial increases. By contrast, the output of business equipment fell back 0.4 percent, held down by a large decline for transit equipment that resulted from a further reduction in the production of civilian aircraft. The index for construction supplies also declined 0.4 percent, but the indexes for defense and space equipment and for business supplies advanced 1.2 percent and 0.5 percent, respectively. The output of materials rose 0.2 percent, as an increase for the energy category more than offset declines for both durable and nondurable materials.

Industry Groups

Manufacturing output edged up 0.1 percent in February, but it was still 0.4 percent below its level of a year earlier. The output of durable goods increased 0.3 percent. Among the components of durables, motor vehicle and parts recorded the largest gain, while aerospace and miscellaneous transportation equipment recorded the largest decline. The output of nondurable manufacturing slipped 0.1 percent as its components posted mixed results. Sizable declines were posted by textile and product mills, by petroleum and coal products, and by chemicals. Sizable gains were posted by food, beverage, and tobacco products; by apparel and leather; and by printing and support. The output of other manufacturing (publishing and logging) declined 1.0 percent and was 9.0 percent below its year-earlier level.

Mining output fell 1.5 percent in February, reflecting broad-based declines among its components; even so, overall mining production was 2.1 percent above its year-earlier level. The output of utilities jumped 7.1 percent in February, with electric and natural gas utilities each posting large gains.

Capacity utilization for manufacturing in February was 75.0 percent, unchanged from its rate in January but 3.2 percentage points below its long-run average. The utilization rate for mining fell to 88.4 percent, but it was 1.2 percentage points above its long-run average. The operating rate for utilities advanced to 75.8 percent, a rate that is 9.4 percentage points below its long-run average.

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