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Industrial Production Growth Slows As Manufacturing Misses, Capacity Utilization Highest Since 2008
Last month's industrial production beat was revised up dramatically to its biggest beat since 1998 - courtesy of the annual revision of the data series as noted below - which left this month showing fading growth. Perhaps more disappointingly was the 4th miss of the last 5 months for manufacturiung production. Capacity Utlization rose to an impressive 79.2% as "slack" in the un-job-producing economy is rapidly disappearing. This was also the highest capicty utilization print (once again courtesy of the annual data revision) since June 2008.
Manufacturing missed 4th of last 5 months... and dropped
From the Fed:
Industrial production increased 0.7 percent in March after having advanced 1.2 percent in February. The rise in February was higher than previously reported primarily because of stronger gains for durable goods manufacturing and for mining. For the first quarter as a whole, industrial production moved up at an annual rate of 4.4 percent, just slightly slower than in the fourth quarter of 2013. In March, the output of manufacturing rose 0.5 percent, the output of utilities increased 1.0 percent, and the output of mines gained 1.5 percent. At 103.2 percent of its 2007 average, total industrial production in March was 3.8 percent above its level of a year earlier. Capacity utilization for total industry increased in March to 79.2 percent, a rate that is 0.9 percentage point below its long-run (1972–2013) average but 1.2 percentage points higher than a year prior
And by group:
In March, manufacturing production recorded an increase of 0.5 percent; factory output rose 1.4 percent in February, 0.5 percentage point faster than previously reported. For the first quarter, the index for manufacturing increased at an annual rate of 1.7 percent, with similarly sized gains for durables and nondurables. The factory operating rate moved up 0.2 percentage point in March to 76.7 percent, a rate 2.0 percentage points below its long-run average.
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In March, mining output climbed 1.5 percent, its fifth consecutive monthly increase; over the past year, the index has risen 7.9 percent. The output of utilities rose 1.0 percent; unseasonably cold temperatures since the start of the year led to a jump in the index of 17.9 percent at an annual rate for the first quarter. The utilization rate for mining, 89.1 percent, was nearly 2 percentage points above its long-run average, while the operating rate for utilities, 85.0 percent, was about 1 percentage point below its long-run average.
Capacity utilization rates in March for industries grouped by stage of process were as follows: At the crude stage, utilization increased 0.6 percentage point to 87.0 percent, a rate 0.7 percentage point above its long-run average; at the primary and semifinished stages, utilization moved up 0.5 percentage point to 78.1 percent, a rate 2.7 percentage points below its long-run average; at the finished stage, utilization rose 0.1 percentage point to 76.7 percent, a rate 0.4 percentage point below its long-run average
Finally, as noted earlier, on March 28 the Fed concluded its annual IP and Cap Utilization data revision, which incidentally led to the surge in the February data (but... but... harsh weather). Those curious can find the full breakdown at this link, but the main visual breakdown of the pre- and post-revision data is below.
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The only reason Capacity Utilization is up is because the Capacity part is shrinking.
yep , and next to come is probably inflation , right ?
I am all mixed up now. Isn't burger flipping now considered part of industrial production?
RIP Mike Ruppert.... Zerohedge needs to start a post that we can all say good bye to this pioneer.
Robert
mining CU is rising above trend because of shutdowns. Maybe we get to 100% when everything stops...
Funny stuff. Ex-mayor and corrupt crony capitalist Bloomturd thinks he has earned his way into heaven for his work on obesity and gun control.
http://www.weeklystandard.com/blogs/michael-bloomberg-i-have-earned-my-p...
It takes a special kind of egomaniac to say and believe that kind of thing.
People who know what G-d thinks and wants scare the crap out of me.
I wonder if capacity utilization is like workforce participation....the top line is dropping so the fewer companies in the mix can raise the % faster....if we could produce 100 widgets a few years ago..now we can only produce 80 widgets today with what we have left...does this sound right???
I bet this beat is due to the increased utilization of Phonystar's bitcoin mining rig
Why doesnt the US goverment buy these slow growing factories and set them up as prisons for White Cattle Ranchers that get in the way of Politicians looking to sell the country out to enrich themsleves?
Who needs manufacturing ? /sarc Look at that casino rally!
Bah...Tis only a minor flesh wound.
... but but but we have reached a permanently high plateau....