July Industrial Production Shows First Gain in 9 Months
Written by
July’s Industrial Production Index rose by +0.5%, compared to a Bloomberg consensus of +0.6%. his was the index’s first gain in nine months. Capacity utilization came in slightly higher than expected at 68.5% compared to a consensus forecast of 68.0%. The manufacturing output experienced an increment of +1.0%, mostly attributable to increased automobile production. Excluding automobiles, manufacturing would have only experienced a +0.2% increase, and the overall industrial production index would have declined by -0.1%. Utility output fell by 2.4% due to unusually mild weather around the country. The production of consumer goods rose +0.6% in the month, but this is due almost entirely to a +17.4% increase in automotive related production. The +0.5% increment in business equipment was supported by increased production of transportation equipment, which included motor vehicles and aircraft.
| Percent change | ||||||
| Industrial production | Mar-09 | Apr-09 | May-09 | Jun-09 | Jul-09 | YoY |
| Total index | -1.6 | -.7 | -1.1 | -.4 | .5 | -13.1 |
| Previous estimates | -1.7 | -.7 | -1.2 | -.4 | ||
| Major market groups | ||||||
| Final Products | -1.1 | -.9 | -1.2 | -.5 | .6 | -10.1 |
| Consumer goods | -.2 | -.6 | -1.0 | -.5 | .6 | -7.2 |
| Business equipment | -3.2 | -1.9 | -2.1 | -.6 | .5 | -17.2 |
| Nonindustrial supplies | -1.9 | -.6 | -.8 | -.1 | -.2 | -15.1 |
| Construction | -2.4 | -1.3 | -.1 | -.4 | -.1 | -21.0 |
| Materials | -2.1 | -.6 | -1.2 | -.4 | .8 | -15.1 |
| Major industry groups | ||||||
| Manufacturing (see note below) | -1.7 | -.7 | -1.0 | -.6 | 1.0 | -14.4 |
| Previous estimates | -1.8 | -.6 | -1.1 | -.6 | ||
| Mining | -2.5 | -2.7 | -1.2 | -1.0 | .8 | -11.4 |
| Utilities | -.3 | .3 | -2.0 | .9 | -2.4 | -4.9 |
Join the discussion