US Industrial Output Shrinks in August

Industrial production in the United States fell 0.4 percent in August over July, following an upwardly revised 0.9 percent gain in the previous period. Figures came worse than market expectations as manufacturing fell 0.5 percent, mining dropped 0.6 percent while production of utilities rose 0.6 percent.

Manufacturing output fell 0.5 percent in August, as the production of durable goods declined 0.9 percent and the production of nondurable goods was unchanged.

The output of durables other than motor vehicles and parts rose 0.1 percent, with gains of more than 1 percent for nonmetallic mineral products, machinery, and miscellaneous manufacturing and with losses of more than 1 percent for fabricated metal products and for aerospace and miscellaneous transportation equipment.

Among the nondurable goods industries, the indexes for petroleum and coal products and for chemicals each fell about 1/2 percent, while the indexes for food, beverage, and tobacco products and for plastics and rubber products each rose about 1/2 percent. The production of other manufacturing (publishing and logging) edged down 0.2 percent.

The index for mining fell 0.6 percent in August compared to 1.8 percent growth in July. The index for utilities rose 0.6 percent compared to 0.2 percent decline in July.

The July figure is now estimated to be greater than originally reported last month, largely as a result of upward revisions for mining and utilities. 

Total industrial production in August was 0.9 percent above its year-earlier level. 

Capacity utilization for the industrial sector fell 0.4 percentage point to 77.6 percent in August, a 2.5 percentage points below its long-run (1972–2014) average.

US Industrial Output Shrinks in August

Federal Reserve | Joana Taborda |
9/15/2015 3:10:19 PM