February 2014 Industrial Production, Capacity Utilization and Capacity

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Industrial production increased 0.6 percent in February after having declined 0.2 percent in January. Manufacturing output rose 0.8 percent in February, nearly reversing January’s decline of 0.9 percent that had resulted, in part, from extreme weather. The February gain in factory production was the largest since last August. The output of utilities edged down 0.2 percent following a jump of 3.8 percent in January. At 101.6 percent of its 2007 average, total industrial production in February was 2.8 percent above its level of a year earlier.

Wood Products output dropped by 1.2 percent (back to a level last seen in March 2013) while Paper grew by 0.8 percent. 

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The capacity utilization rate for total industry increased in February to 78.8 percent, a rate that is 1.3 percentage points below its long-run (1972-2013) average. Wood Products capacity utilization fell back by 1.4 percent (to a level on par with June 2013), while Paper rose by 0.9 percent. 

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Capacity at the all-industries and manufacturing levels both moved higher by 0.2 in February. Wood Products capacity nudged 0.2 percent higher 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.