by calculated risk October 17, 2024 04:01:00 PM
Previously at the Fed: Industrial production and production capacity utilization
Industrial production (IP) in September decreased by 0.3%. After advancing 0.3% in August. Strikes at major producers of civil aircraft led to a decline in total IP growth of about 0.3% in September, while two hurricanes led to a decline of about 0.3%. Overall industrial production in the third quarter decreased at an annual rate of 0.6%. Manufacturing output in September fell 0.4%, and the mining index fell 0.6%. The utilities index rose 0.7%. Total industrial production in September was 102.6% of the 2017 average, 0.6% lower than the same period last year. Capacity utilization in September fell slightly to 77.5%This rate is 2.2 percentage points lower than the long-term (1972-2023) average.
Emphasis added
Click on the graph to see a larger image.
This graph shows capacity utilization. The series is up from the low set in April 2020 and above the level in February 2020 (pre-pandemic).
The capacity utilization rate of 77.5% is 2.2% below the average from 1972 to 2022. This fell below agreed expectations.
Note: To better show change, the y-axis does not start at 0.
The second graph shows industrial production since 1967.
Industrial production decreased to 102.6. This is higher than pre-pandemic levels.
Industrial production was below market expectations.
