US Industrial Production Slows in June


Industrial production increased 0.2 percent in June, following a revised 0.5 percent increase in May, as utilities output marked its fifth consecutive month of declines.

In June, manufacturing output edged up 0.1 percent for its fifth consecutive monthly gain.

The production of durable goods increased 0.4 percent in June and rose at an annual rate of 8.8 percent in the second quarter. In June, the gains were broad based among durable manufacturing industries, with increases of 1.0 percent or more in the indexes for nonmetallic mineral products, for primary metals, for fabricated metal products, for aerospace and miscellaneous transportation equipment, and for furniture and related products. Small declines were recorded in the indexes for machinery and for motor vehicles and parts. Capacity utilization for durable goods manufacturing increased 0.2 percentage point to 77.3 percent, a rate 0.3 percentage point above its long-run average.

The production of nondurable goods moved down 0.3 percent in June but increased at an annual rate of 5.0 percent in the second quarter. In June, the output of petroleum and coal products fell 2.7 percent, in part because of a disruption at a major refinery; the production of apparel and leather declined 1.3 percent, and the index for food, beverage, and tobacco products moved down 0.6 percent. The other categories of nondurables posted gains, with the largest increase, 1.2 percent, recorded for plastics and rubber products. The operating rate for nondurable manufacturing declined 0.3 percentage point to 78.4 percent, a rate 2.3 percentage points below its long-run average.

The output of non-NAICS manufacturing industries (publishing and logging) advanced 1.0 percent in June following a decrease of 0.8 percent in May. The index decreased at an annual rate of 0.4 percent in the second quarter.

Mining output advanced 0.8 percent in June; the output of mines was 9.7 percent above its level of a year earlier. Capacity utilization at mines edged up 0.1 percentage point in June to 90.0 percent, a rate 2.7 percentage points above its long-run average. The output of utilities decreased 0.3 percent, marking its fifth consecutive month of declines. The operating rate for utilities decreased 0.3 percentage point in June to 78.7 percent, a rate 7.4 percentage points below its long-run average.

For the second quarter as a whole, manufacturing production rose at an annual rate of 6.7 percent, while mining output increased at an annual rate of 18.8 percent because of gains in the extraction of oil and gas; by contrast, the output of utilities fell at an annual rate of 21.4 percent following a weather-related increase of 15.6 percent in the first quarter. 

At 103.9 percent of its 2007 average, total industrial production in June was 4.3 percent above its level of a year earlier. The capacity utilization rate for total industry was unchanged in June at 79.1 percent, a rate that is 1.0 percentage point below its long-run (1972–2013) average.

US Industrial Production Slows in June


US Federal Reserve | Joana Taborda | joana.taborda@tradingeconomics.com
7/16/2014 2:32:36 PM