April 2014 Industrial Production, Capacity Utilization and Capacity

Click image for larger version

Industrial production decreased 0.6 percent in April 2014 after having risen about 1 percent in both February and March. In April, manufacturing output fell 0.4 percent. The index had increased substantially in February and March following a decrease in January; severe weather had restrained production early in the quarter. The output of utilities dropped 5.3 percent in April, as demand for heating returned toward normal levels. At 102.7 percent of its 2007 average, total industrial production in April was 3.5 percent above its level of a year earlier.

Wood Products output rose by 1.8 percent while Paper inched up by 0.3 percent. 

Click image for larger version

Click image for larger version 

Click image for larger version

The capacity utilization rate for total industry decreased 0.7 percentage point in April to 78.6 percent, a rate that is 1.5 percentage points below its long-run (1972–2013) average. Wood Products capacity utilization increased by 1.5 percent, and Paper 0.4 percent.

Click image for larger version

Capacity at the all-industries and manufacturing levels both moved higher by 0.2 in April. Wood Products appears to have definitely turned a corner; capacity increased by 0.3 percent. Paper, on the other hand, contracted by 0.1 percent to another new low.

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.