August 2013 Industrial Production, Capacity Utilization and Capacity

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Industrial production (IP) advanced 0.4 percent in August (expectations were for a 0.5 percent increase) after having been unchanged in July. Manufacturing production rose 0.7 percent in August on the heels of a 0.4 percent decrease (downwardly revised from -0.1 percent) in July. At 99.4 percent of its 2007 average, total industrial production in August was 2.7 percent above its year-earlier level. Activity in the Wood Products industry expanded by 1.7 percent while Paper rose by 1.1 percent.

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Capacity utilization for total industry edged down 0.1 percentage point to 77.6 percent in July, a rate 0.3 percentage point below its level of a year earlier and 2.6 percentage points below its long-run (1972--2012) average. Wood Products capacity utilization fell by 0.7 percent while Paper nudged 0.1 percent lower.

Capacity utilization for the industrial sector increased 0.2 percentage point in August to 77.8 percent, a rate 0.6 percentage point above its level of a year earlier and 2.4 percentage points below its long-run (1972-2012) average. Wood Products capacity utilization jumped by 1.7 percent while Paper increased by 1.1 percent.

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Capacity at the all-industries and manufacturing levels moved, respectively, 0.2 and 0.1 percent higher. 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.