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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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Monday, December 15, 2014

November 2014 Industrial Production, Capacity Utilization and Capacity

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Industrial production increased 1.3% in November (the biggest month-to-month rise since May 2010, and well above expectations of +0.7%) after edging up in October; output is now reported to have risen at a faster pace over the period from June through October than previously published. In November, manufacturing output increased 1.1%, with widespread gains among industries. The rise in factory output was well above its average monthly pace of 0.3% over the previous five months and was its largest gain since February. In November, the output of utilities jumped 5.1%, as weather that was colder than usual for the month boosted demand for heating. The index for mining decreased 0.1%. At 106.7% of its 2007 average, total industrial production in November was 5.2% above its year-earlier level. Wood Products and Paper output rose by, respectively, 1.3 and 0.1%. 
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Capacity utilization for the industrial sector increased 0.8 percentage point in November to 80.1%, a rate equal to its long-run (1972-2013) average. Wood Products and Paper rose by, respectively, 0.9 and 0.4%. 
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Capacity at the all-industries and manufacturing levels moved higher by, respectively, 0.3 and 0.2%. Wood Products extended its ongoing upward trend (since July 2013) when increasing by 0.4%. Paper, on the other hand, contracted by 0.2% 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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