Industrial Production Climbs Right In Line With Expectations

Business Insider

View photo

.
american factory work industrial production

REUTERS/Jim Young

A worker assembles a pinball machine at Stern Pinball in Melrose Park, just outside Chicago, Illinois, July 10, 2013.

U.S. industrial production grew 0.3% in June, which was right in line with expectations.

"For the second quarter as a whole, industrial production moved up at an annual rate of 0.6 percent," said the Fed.

"In June, manufacturing production rose 0.3 percent following an increase of 0.2 percent in May. The output at mines advanced 0.8 percent in June, while the output of utilities decreased 0.1 percent."

Capacity utilization ticked up to 77.8% from 77.6% a month ago.

From the Federal Reserve's G.17 report:

The production of consumer goods increased 0.5 percent in June following a decline of 0.3 percent in May. The output of durable consumer goods advanced 1.1 percent in June. Every major component of consumer durables either increased or was unchanged, with automotive products and home electronics posting the largest gains—1.4 percent and 2.2 percent, respectively. After having decreased 0.4 percent in both April and May, the output of nondurable consumer goods rose 0.3 percent in June. The index for non-energy nondurables stepped up 0.5 percent, driven by gains in the indexes for foods and tobacco and for paper products. The output of consumer energy products declined 0.3 percent, marking the third consecutive monthly decrease for this index. The index for total consumer goods moved up at an annual rate of 1.4 percent in the second quarter, a rate of expansion substantially below the increase of 5.6 percent in the first quarter but about the same as in the fourth quarter of 2012. The smaller increase in the second quarter reflected a deceleration in the output of both durables and non-energy nondurables.

The index for business equipment moved up 0.5 percent in June after having fallen 0.1 percent in May and 0.2 percent in April. The gain in June reflected increases of 0.5 percent for transit equipment and 1.1 percent for the industrial and other equipment category. Conversely, the production of information processing equipment dropped 1.0 percent. For the second quarter as a whole, the output of business equipment rose at an annual rate of 2.2 percent, about half of its rate of increase in the previous quarter. The indexes for information processing equipment and for industrial and other equipment recorded substantially slower gains in the second quarter than in the first quarter. By contrast, the index for transit equipment rose at an annual rate of 6.4 percent last quarter to more than reverse a decrease of 2.9 percent in the first quarter.

The output of defense and space equipment increased 0.1 percent in June, the first monthly gain for the index in 2013. The index decreased at an annual rate of about 3 1/2 percent in both the first and second quarters.

Among nonindustrial supplies, the production of construction supplies edged up in June after having edged down in May; output decreased more than 1 percent in both March and April. The index fell at an annual rate of 4.9 percent in the second quarter after having jumped 14.3 percent in the first quarter and 7.2 percent in the fourth quarter of last year. The index for business supplies edged up 0.1 percent in June, its first increase since March; the index decreased at an annual rate of 1.3 percent in the second quarter to reverse about half of its gain in the previous quarter.

The production of materials to be processed further in the industrial sector advanced 0.2 percent in June, the same rate of increase as in May. The output of durable materials gained 0.4 percent in June, led by an increase of 0.8 percent for equipment parts; the index for consumer parts moved down a little, and the index for other durable materials was up slightly. The production of nondurable materials edged down 0.1 percent, as decreases for paper materials and for chemical materials outweighed the rise for textile materials. The output of energy materials stepped up 0.4 percent. For the second quarter as a whole, energy materials advanced at an annual rate of 5.2 percent after having increased 2.2 percent in the first quarter. In contrast, the indexes for both durable and nondurable materials decreased last quarter after having recorded increases in the previous quarter. The output of total industrial materials increased at an annual rate of 0.9 percent in the second quarter, well below the gain of 3.4 percent in the first quarter.

Click Here For Updates »



More From Business Insider
View Comments