US Industrial Output Growth Below Estimates

Industrial production in the United States increased 0.2 percent month-over-month in July of 2017, lower than a 0.4 percent gain in June and below market expectations of 0.3 percent. Manufacturing output shrank 0.1 percent, mainly due to a fall in production of motor vehicles and parts and mining rose at a slower pace while utilities rebounded.

The index for durables decreased 0.5 percent, but the index for nondurables increased 0.4 percent. Among durable manufacturing industries, the largest decrease, about 3 1/2 percent, was recorded by motor vehicles and parts; in addition, the indexes for primary metals and for furniture and related products each dropped more than 1 percent. Among nondurable manufacturing industries, increases of 1 percent or more were posted by chemicals and by apparel and leather. The index for other manufacturing (publishing and logging) moved down 0.4 percent.

The index for mining rose 0.5 percent in July for its fourth consecutive monthly increase. Within mining, gains in oil and gas extraction and in metal ore mining were partially offset by declines in nonmetallic mineral mining and in drilling and support activities. The decrease of 0.5 percent in drilling and support services followed 10 consecutive months of increases for that index.

Utilities output went up 1.6 percent. 

Capacity utilization for manufacturing edged down 0.1 percentage point in July to 75.4 percent, a rate that is 3.0 percentage points below its long-run average. The operating rate for durables declined 0.4 percentage point to 74.2 percent, the rate for nondurables increased 0.3 percentage point to 77.7 percent, and the rate for other manufacturing (publishing and logging) was unchanged. Utilization for mining moved up 0.2 percentage point to 84.6 percent, and the rate for utilities increased 1.2 percentage points to 78.1 percent. Capacity utilization rates for both mining and utilities remained well below their long-run averages.

Year-on-year, industrial production went up 2.2 percent. It is the highest annual gain since January of 2015, due to a 1.2 percent rise in manufacturing and a 10.21 percent jump in mining. On the other hand, utilities output fell 0.6 percent. 

US Industrial Output Growth Below Estimates

Fed | Joana Taborda |
8/17/2017 1:48:52 PM