US Industrial Output Rises The Most In 3 Years

US industrial production increased by 1 percent month-over-month in April 2017, following a downwardly revised 0.4 percent rise in March and beating market expectations of a 0.3 percent gain. It was the largest increase in industrial production since February 2014, as output rebounded for both manufacturing and mining while utilities grew at a slower pace.

Manufacturing production rose 1 percent, recovering from a 0.4 percent drop in March, as a result of widespread increases among its major industries. Durable manufacturing went up 1 percent, boosted by motor vehicles and parts (5 percent from -3.6 percent in March), machinery (0.9 percent from -0.4 percent), fabricated metal products (0.5 percent from -0.5 percent) and computer and electronic products (0.1 percent from 1.3 percent). Nondurable manufacturing also grew 1 percent, as output rose for food, beverage, and tobacco products (1.6 percent from -0.5 percent in March), plastics and rubber products (0.9 percent from -2.6 percent), petroleum and coal products (2.5 percent from 2.8 percent), and paper (0.8 percent from -1 percent).

Also, mining output advanced 1.2 percent after falling by 0.4 percent in the previous month; and utilities output rose at a slower 0.7 percent after jumping by 8.2 percent in March.

Compared to the same month of 2016, industrial production rose 2.2 percent, as output rose for manufacturing (1.7 percent) and mining (7.3 percent), but fell for utilities (-0.5 percent).

Capacity utilization for the industrial sector increased 0.6 percentage point in April to 76.7 percent, a rate that is 3.2 percentage points below its long-run (1972–2016) average.

US Industrial Output Rises The Most In 3 Years

Federal Reserve | Joana Ferreira |
5/16/2017 1:44:58 PM