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Macro Pulse highlights recent activity and events expected to affect the U.S. economy over the next 24 months. While the review is of the entire U.S. economy its particular focus is on developments affecting the Forest Products industry. Everyone with a stake in any level of the sector can benefit from
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Wednesday, July 16, 2014

June 2014 Industrial Production, Capacity Utilization and Capacity

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Industrial production rose 0.2 percent in June after having risen 0.5 percent in May. The increase in May was previously reported to have been 0.6 percent. Manufacturing output increased 0.1 percent in June after having moved up 0.5 percent in the previous month. At 103.9 percent of its 2007 average, total industrial production in June was 4.3 percent above its level of a year earlier.
Wood Products and Paper output both rose by 0.3 percent. 
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The capacity utilization rate for total industry decreased less than 0.1 percentage point in June to 79.1 percent, a rate that is 1.0 percentage point below its long-run (1972–2013) average. Wood Products capacity utilization decreased by 1.3 percent, but Paper rose by 0.6 percent. 
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Capacity at the all-industries and manufacturing levels moved higher by, respectively, 0.3 and 0.2 percent in June. Wood Products extended its nearly year-long trend when increasing by 0.4 percent. Paper, on the other hand, contracted by 0.2 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.

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