US Industrial Output Flat in June


US industrial output was unchanged in June 2019, following a 0.4 percent growth in May and missing market forecasts of a 0.1 percent gain. Increases for both manufacturing and mining offset a decline for utilities. For the second quarter as a whole, industrial production declined at an annual rate of 1.2 percent, its second consecutive quarterly decrease.

Manufacturing output increased 0.4 percent in June after moving up 0.2 percent in May. The indexes for durables and for nondurables advanced 0.4 percent and 0.5 percent, respectively. The output for other manufacturing (publishing and logging) declined 0.5 percent. Among durables, an increase of nearly 3 percent in the output of motor vehicles and parts was accompanied by gains of around 1 percent in the indexes for nonmetallic mineral products and for computer and electronic products. Among nondurables, the index for petroleum and coal products recorded the largest advance—2.5 percent—and most other categories also posted gains; the indexes for printing and support activities and for chemicals registered the only declines. Despite the gains in the past two months, factory production declined at an annual rate of 2.2 percent in the second quarter, about the same pace as in the first quarter.

Mining output rose 0.2 percent, as a gain in oil and gas extraction was partly offset by declines in coal mining and in support activities for mining. Mining production advanced 8.9 percent at an annual rate for the second quarter, its 11th consecutive quarterly increase.

Electric utilities and natural gas utilities posted drops of 3.9 percent and 2.0 percent, respectively.

Capacity utilization for the industrial sector decreased 0.2 percentage point in June to 77.9 percent, a rate that is 1.9 percentage points below its long-run (1972–2018) average. Capacity utilization for manufacturing rose 0.3 percentage point in June, with increases for both durables and nondurables and a decrease for other manufacturing (publishing and logging). The overall manufacturing operating rate of 75.9 percent is 2.4 percentage points below its long-run average. The utilization rate for mining moved down to 91.5 percent, which is still more than 4 percentage points higher than its long-run average. The operating rate for utilities dropped 3.0 percentage points and remained well below its long-run average.

US Industrial Output Flat in June


Federal Reserve | Joana Ferreira | joana.ferreira@tradingeconomics.com
7/16/2019 1:20:35 PM