US Industrial Production Flat in October

Industrial output in the United States was unchanged in October from September of 2016, following a 0.2 percent drop in the previous period and lower than market expectations of a 0.2 percent gain. Warmer-than-normal temperatures reduced the demand for heating, hurting utilities output and offsetting gains in mining and manufacturing.

Utilities output dropped 2.6 percent.

In contrast, manufacturing output increased 0.2 percent in October but was 0.2 percent below its level of a year earlier. Production of durables rose 0.4 percent, the production of nondurables remained unchanged, and the production of other manufacturing (publishing and logging) fell 0.6 percent. Most durable goods industries posted increases; the only declines were registered by aerospace and miscellaneous transportation equipment and by miscellaneous manufacturing. No major nondurable goods industry recorded a sharp swing in output: Chemicals posted the largest gain, 0.4 percent, while paper registered the largest decrease, 0.8 percent.

Mining advanced 2.1 percent in October,  its largest increase since March 2014. Declines in the extraction of crude oil and natural gas were outweighed by gains for most other mining industries, particularly coal mining.

Capacity utilization for manufacturing edged up 0.1 percentage point in October to 74.9 percent, a rate that is 3.6 percentage points below its long-run average. 

US Industrial Production Flat in October

Federal Reserve | Joana Taborda |
11/16/2016 2:28:10 PM