November 2013 Industrial Production, Capacity Utilization and Capacity

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Industrial production increased 1.1 percent in November after having edged up 0.1 percent in October (instead of the previously reported -0.1 percent). The gain in November was the largest since November 2012. Manufacturing output increased 0.6 percent in November, its fourth consecutive monthly gain. Much of the increase in the headline index originated with utilities; output from that sector was up 3.9 percent in November, as colder-than-average temperatures boosted demand for heating. At 101.3 percent of its 2007 average, total industrial production was 3.2 percent above its year-earlier level. In November, industrial production finally surpassed its pre-recession peak of December 2007 and was 21 percent above its trough of June 2009. Wood Products output jumped by 3.1 percent while Paper rose by 0.2 percent.

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Capacity utilization for the industrial sector increased 0.8 percentage point in November to 79.0 percent, a rate 1.2 percentage points below its long-run (1972-2012) average. Wood Products capacity utilization leaped by 3.1 percent while Paper increased by 0.3 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.