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Macro Pulse highlights recent activity and events expected to affect the U.S. economy over the next 24 months. While the review is of the entire U.S. economy its particular focus is on developments affecting the Forest Products industry. Everyone with a stake in any level of the sector can benefit from
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Thursday, October 21, 2010

September 2010 Industrial Production, Capacity Utilization and Capacity

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Industrial production decreased 0.2 percent in September after posting increases during 13 of the previous 14 months. For 3Q2010 as a whole, total industrial production rose at an annual rate of 4.8 percent after having advanced about 7 percent in both 1Q and 2Q2010. The index for manufacturing decelerated sharply in the third quarter: After having jumped at an annual rate of 9.1 percent in the second quarter, factory output gained 3.6 percent in the third quarter. At 93.2 percent of its 2007 average, total industrial production in September was 5.4 percent above its year-earlier level.
 
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Industrial production among forest products manufacturers was mixed in September; Wood Products lost 0.1 percent while Paper gained 0.1 percent. September’s industrial production at the all-industries level was 5.4 percent higher than a year earlier, Paper gained only 3.4 percent and Wood Products was 1.3 percent lower.
 
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The capacity utilization rate for total industry edged down to 74.7 percent, a rate 4.2 percentage points (5.9 percent) above the rate from a year earlier but 5.9 percentage points below its average from 1972 to 2009. Capacity utilization rates among both Wood Products and Paper rose 0.2 percentage point.
 
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Capacity at the all-industries level nudged higher in September, but continued to fall in both Wood Products and Paper sectors.

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