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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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Wednesday, July 17, 2013

June 2013 Industrial Production, Capacity Utilization and Capacity

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Industrial production (IP) increased 0.3 percent in June after having been unchanged in May. For 2Q2013 as a whole, industrial production moved up at an annual rate of 0.6 percent. In June, manufacturing production rose 0.3 percent following an increase of 0.2 percent in May. At 99.1 percent of its 2007 average, total industrial production was 2.0 percent above its year-earlier level. Wood Products retreated by 0.6 percent in June while Paper fell by 0.9 percent. 
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The rate of capacity utilization for total industry edged up 0.1 percentage point (0.2 percent) to 77.8 percent, a rate that was 0.1 percentage point above its level of a year earlier but 2.4 percentage points below its long-run (1972--2012) average. Like industrial production, Wood Products capacity utilization fell by 0.6 percent while Paper dropped by 0.9 percent. 
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Capacity at the all-industries and manufacturing levels moved higher (both 0.1 percent). By contrast, Wood Products remained unchanged while Paper contracted by 0.1 percent.
The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.

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