US Industrial Output Rises More than Expected


Industrial production in the US increased 0.4 percent month-over-month in August of 2018, following an upwardly revised 0.4 percent rise in July and beating market expectations of a 0.3 percent increase. Manufacturing moved up 0.2 percent, boosted by a 4 percent rise in motor vehicles and parts with motor vehicle assemblies jumping to an annual rate of 11.5 million units, the strongest since April. Excluding the gain in motor vehicles and parts, factory output was unchanged.

Within manufacturing, the index for durables rose 1.0 percent, while the indexes for nondurables and for other manufacturing (publishing and logging) declined 0.5 percent and 0.9 percent, respectively. Within durables, the largest increases were recorded by motor vehicles and parts, primary metals, and machinery, while the only sizable decrease was registered by furniture and related products. By contrast, within nondurables, only textile and product mills posted a gain.

Mining output rose 0.7 percent in August; it has advanced more than 14 percent in the past 12 months, supported by substantial increases in the oil and gas sector. The index for utilities moved up 1.2 percent in August, as a rebound for electric utilities outweighed a small decline for gas utilities.

Capacity utilization for manufacturing edged up in August to 75.8 percent, 2 1/2 percentage points below its long-run average. The operating rate for durables increased, but the rates for nondurables and for other manufacturing both decreased. The utilization rate for mining rose to 92.0 percent and remained well above its long-run average. The rate for utilities went up to 78.0 percent but was more than 7 percentage points below its long-run average.

Year-on-year, industrial output increased 4.9 percent, the biggest annual gain since December of 2010.

US Industrial Output Rises More than Expected


Fed | Joana Taborda | joana.taborda@tradingeconomics.com
9/14/2018 1:35:29 PM