Post Isaac Industrial Production Slowly Gains Momentum
By TJ Kim – Bondsquawk
October 16, 2012
Following 1.4% decline in August, Industrial Production climbed up 0.4% in September.
According to the Federal Reserve,
“Roughly 0.3 percentage point of the decline in overall industrial production in August reflected the effect of precautionary idling of production in late August along the Gulf of Mexico in anticipation of Hurricane Isaac, and part of the rise in September is a result of the subsequent resumption of activity at idled facilities”
The production of consumer goods did not move in September. Declines in durable goods offset an increase in nondurables.
“For September, the output of durable goods dropped 1.7 percent. Among durable consumer goods categories, the production of automotive products fell 2.9 percent, a second consecutive large decline. The indexes for home electronics and for miscellaneous goods posted smaller declines, and the index for appliances, furniture and carpeting moved up. The production of nondurables advanced 0.6 percent, with increases in the output of both energy products and non-energy goods.”
There were improvements in the output of business equipment, and defense and space, 0.8% and 1.7% respectively.
In Manufacturing component, both durables and nondurables moved up slightly.
“Gains of 1 percent or more were registered in the indexes for aerospace and miscellaneous transportation equipment and for electrical equipment, appliances, and components, but the output of motor vehicles and parts and of primary metals fell back. “
“For September, decreases in the output of printing, of petroleum and coal products, and of plastics and rubber products were more than offset by increases in most of the other major categories.”
In terms of capacity utilization, the result for September did not change for Manufacturing, but increased in Mining and Utilities.
Original post can be found here
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