Saturday , October 19 2019
Home / Calculated Risk / Industrial Production Increased in August

Industrial Production Increased in August

Summary:
From the Fed: Industrial Production and Capacity UtilizationIndustrial production rose 0.6 percent in August after declining 0.1 percent in July. Manufacturing production increased 0.5 percent, more than reversing its decrease in July. Factory output has increased 0.2 percent per month over the past four months after having decreased 0.5 percent per month during the first four months of the year. In August, the indexes for utilities and mining moved up 0.6 percent and 1.4 percent, respectively. At 109.9 percent of its 2012 average, total industrial production was 0.4 percent higher in August than it was a year earlier. Capacity utilization for the industrial sector increased 0.4 percentage point in August to 77.9 percent, a rate that is 1.9 percentage points below its long-run (1972–2018)

Topics:
Calculated Risk considers the following as important:

This could be interesting, too:

Lance Roberts writes For The Bulls, It’s Now Or Never 10-18-19

Yves Smith writes Links 10/19/19

Yves Smith writes SUVs Are Back, and They’re Spewing a Boggling Amount of Carbon

Yves Smith writes Impoverished Economics? Unpacking the Economics Nobel Prize

From the Fed: Industrial Production and Capacity Utilization
Industrial production rose 0.6 percent in August after declining 0.1 percent in July. Manufacturing production increased 0.5 percent, more than reversing its decrease in July. Factory output has increased 0.2 percent per month over the past four months after having decreased 0.5 percent per month during the first four months of the year. In August, the indexes for utilities and mining moved up 0.6 percent and 1.4 percent, respectively. At 109.9 percent of its 2012 average, total industrial production was 0.4 percent higher in August than it was a year earlier. Capacity utilization for the industrial sector increased 0.4 percentage point in August to 77.9 percent, a rate that is 1.9 percentage points below its long-run (1972–2018) average.
emphasis added
Industrial Production Increased in August Click on graph for larger image.

This graph shows Capacity Utilization. This series is up 11.2 percentage points from the record low set in June 2009 (the series starts in 1967).

Capacity utilization at 77.9% is 1.9% below the average from 1972 to 2017 and below the pre-recession level of 80.8% in December 2007.

Note: y-axis doesn't start at zero to better show the change.

Industrial Production Increased in AugustThe second graph shows industrial production since 1967.

Industrial production increased in August to  109.9. This is 26% above the recession low, and 4.3% above the pre-recession peak.

The change in industrial production and increase in capacity utilization were above consensus expectations.

Leave a Reply

Your email address will not be published. Required fields are marked *