Economic Report: Industrial Production
US industrial production, output at the nation’s factories, mines, and utilities, decreased a hefty 1.8% in the month of January, after falling a downwardly-revised 2.4% in December, according to the Federal Reserve. After declines in five of the last six months, production has decreased 10% in the past year, an astonishing number.
The report was significantly below estimations, as economists were expecting a 1.5% decrease in output.
Capacity utilization, a key gauge of inflationary pressures, fell to 72% from 73.6%. This is the lowest level since February 1983, and 9 percentage points below its average level from 1972 to 2007. Lower capacity usually leads to slower inflation, as producers compete with each other for work.
Report Details (via MarketWatch):
Production in the manufacturing sector fell 2.5% in January. Auto companies had extended plant shutdowns in the month. This subtracted 1 percentage point from manufacturing output.
Production was boosted by a 2.7% jump in output of utilities as cold weather gripped much of the country.
The output of consumer goods fell 1.8% in January. The production of consumer durables tumbled 10.5%, while the index for non-durables rose 0.1%.
The index for business equipment fell 3.7%. The production of industrial equipment fell 3%, while transit equipment production fell 11.7%.
Production of non-industrial supplies fell 1% in January after falling 3.1% in the previous month.
Output of construction materials was down 3.4% in January after falling 4.1% in the previous month.
Read Full Report.
- February 18th
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[...] Economic Report: Industrial Production: US industrial production, output at the nation’s factories, mines, and utilities, decreased a hefty 1.8% in the month of January, after falling a downwardly-revised 2.4% in December, according to the Federal Reserve. After declines in five of the last six months, production has decreased 10% in the past year, an astonishing number. The report was significantly below estimations, as economists were expecting a 1.5% decrease in output. Capacity utilization, a key gauge of inflationary pressures, fell to 72% from 73.6%. This is the lowest level since February 1983, and 9 percentage points below its average level from 1972 to 2007. Lower capacity usually leads to slower inflation, as producers compete with each other for work. http://alhambrainvestments.com/blog/2009/02/18/economic-report-industrial-production-3/ [...]
[...] Economic Report: Industrial Production: US industrial production, output at the nation’s factories, mines, and utilities, decreased a hefty 1.8% in the month of January, after falling a downwardly-revised 2.4% in December, according to the Federal Reserve. After declines in five of the last six months, production has decreased 10% in the past year, an astonishing number. The report was significantly below estimations, as economists were expecting a 1.5% decrease in output. Capacity utilization, a key gauge of inflationary pressures, fell to 72% from 73.6%. This is the lowest level since February 1983, and 9 percentage points below its average level from 1972 to 2007. Lower capacity usually leads to slower inflation, as producers compete with each other for work. http://alhambrainvestments.com/blog/2009/02/18/economic-report-industrial-production-3/ [...]