May 2014 Industrial Production, Capacity Utilization and Capacity

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Industrial production rose 0.6 percent in May after having declined 0.3 percent in April. The decrease in April was previously reported to have been 0.6 percent. Manufacturing output increased 0.6 percent in May after having moved down 0.1 percent in the previous month. At 103.7 percent of its 2007 average, total industrial production in May was 4.3 percent above its level of a year earlier.

Wood Products output rose by 1.7 percent while Paper declined by 0.5 percent. 

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The capacity utilization rate for total industry increased 0.2 percentage point in May to 79.1 percent, a rate that is 1.0 percentage point below its long-run (1972-2013) average. Wood Products capacity utilization increased by 1.3 percent, but Paper fell by 0.3 percent. 

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Capacity at the all-industries and manufacturing levels both moved higher by 0.3 in May. Wood Products extended its nearly year-long trend when increasing by 0.4 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.