US Industrial Production Falls

Industrial production in the United States contracted 0.1 percent in October, following a a downwardly revised gain of 0.8 percent in September. While manufacturing increased 0.2 percent, mining and utilities output declined 0.9 percent and 0.7 percent respectively.
Federal Reserve | Joana Taborda | joana.taborda@tradingeconomics.com 11/17/2014 4:28:15 PM
At 104.9 percent of its 2007 average, total industrial production in October was 4.0 percent above its level of a year earlier. Capacity utilization for the industrial sector decreased 0.3 percentage point in October to 78.9 percent, a rate that is 1.2 percentage points below its long-run (1972–2013) average.

Manufacturing output rose 0.2 percent in October, as the production of nondurable goods rose 0.3 percent and the production of durable goods edged up 0.1 percent. Among durable goods industries, machinery posted the largest increase, 1.3 percent, while wood products, computers and electronic products, and furniture and related products all recorded gains of more than 1/2 percent. These gains were partially offset by declines of more than 1 percent in the indexes for nonmetallic mineral products and for motor vehicles and parts. The decline in motor vehicles and parts resulted from a decrease in vehicle assemblies, which fell 400,000 units to an annual rate of 11.1 million. Production increased for most nondurable goods industries, with the largest advances recorded by chemicals and by plastics and rubber products; only the paper industry registered a decline. The production of other manufacturing industries fell 1.1 percent.

The capacity utilization rate for manufacturing edged down 0.1 percentage point in October to 77.2 percent, a rate 1.5 percentage points below its long-run average. Although the operating rate for nondurable goods industries increased, utilization both for durables and for other manufacturing (non-NAICS) decreased. The utilization rate for mines fell 1.5 percentage points to 88.3 percent, while the rate for utilities decreased 0.6 percentage point to 78.5 percent.

US Industrial Production Falls