July industrial production data are out.
Industrial production was unchanged in July from June’s levels, missing expectations for a 0.3% rise, and slowing from June’s downward-revised 0.2% pace of growth.
Manufacturing production fell 0.1%. Economists predicted it would increase 0.2% in July after advancing a downward-revised 0.2% in June.
Capacity utilization edge down to 77.6% from last month’s downward-revised 77.7% level. Economists were looking for a tick up to 77.9%.
Below is the full text of the release.
The production of consumer goods decreased 0.5 per cent in July after having increased 0.6 per cent in June; in July, the index stood 1.3 per cent above its year-earlier level. The production of durable consumer goods fell 1.5 per cent; within consumer durables, automotive products posted a loss of 2.4 per cent, while all other indexes moved down between 1/2 and 1 per cent. The index for consumer nondurables contracted 0.2 per cent. The output of non-energy nondurables decreased 0.4 per cent, with losses in the indexes for foods and tobacco, for chemical products, and for paper products. After having fallen in the previous three months, the output of consumer energy products moved up 0.3 per cent, as increases in petroleum refining more than offset lower sales of electricity to residences.
The index for business equipment was unchanged in July and stood 2.1 per cent above its year-earlier level. In July, the index for transit equipment was unchanged, the production of information processing equipment decreased 0.7 per cent, and the index for industrial and other equipment edged up 0.2 per cent.
The output of defence and space equipment advanced 1.0 per cent in July. The increase in July was the first gain for the index since December 2012. The cumulative decline over the first six months of the year was 2.3 per cent.
In July, the output of construction supplies advanced 0.5 per cent for a second consecutive month and, despite large swings over the past year, stood 4.4 per cent above its level of a year earlier. The production of business supplies declined 0.7 per cent in July and was 0.5 per cent below its year-earlier level.
The production of materials to be processed further in the industrial sector moved up 0.4 per cent in July and stood 1.7 per cent above its year-earlier level. The output of durable materials edged up 0.2 per cent in July, as a decline for equipment parts was outweighed by increases for consumer parts and for other durable materials. The production of nondurable materials moved down 0.5 per cent as a result of losses for textile, paper, and chemical materials. The output of energy materials advanced 1.2 per cent on the strength of gains in oil and natural gas extraction; in July, the index for this market group was 3.5 per cent above its level of a year earlier.
Manufacturing output declined 0.1 per cent in July after having increased 0.3 per cent in May and 0.2 per cent in June. The index in July was slightly above its level at the end of last year and 1.3 per cent above its level in July 2012. The factory operating rate moved down 0.1 percentage point to 75.8 per cent, a rate 2.9 percentage points below its long-run average.
The output of durable goods fell 0.2 per cent in July; the index has been little changed since February. In July, primary metals posted the largest gain among the major components of durables, 2.6 per cent, while motor vehicles and parts recorded the largest loss, 1.7 per cent. Capacity utilization for durable goods manufacturing fell 0.3 percentage point to 75.6 per cent, a rate 1.4 percentage points below its long-run average.
The index for nondurable manufacturing was unchanged in July for a second month in a row and was 0.9 per cent above its level of a year earlier. Among the major components of nondurables, the production of petroleum and coal products advanced 2.0 per cent, and the index for apparel and leather goods moved up 0.7 per cent. Printing and support recorded the largest decrease in output, 1.2 per cent, while the indexes for food, beverage, and tobacco products and for textile and product mills both posted losses of around 1/2 per cent. The indexes for other nondurable goods industries were little changed. Capacity utilization for nondurables edged down 0.1 percentage point to 77.3 per cent, a rate 3.4 percentage points below its long-run average.
Production for non-NAICS manufacturing industries (publishing and logging) decreased 0.1 per cent in July after having increased 0.9 per cent in June. The index was 4.5 per cent below its year-earlier level.
Mining output moved up 2.1 per cent in July following an increase of 1.0 per cent in June. The gain in July reflected a large increase in oil and gas extraction. The operating rate for mining rose 1.5 percentage points to 89.5 per cent, a rate 2.2 percentage points above its long-run average. The production of electric and gas utilities fell 2.1 per cent, and their operating rate declined 1.6 percentage points to 76.2 per cent, a rate 10.0 percentage points below its long-run average.
Capacity utilization rates in July for industries grouped by stage of process were as follows: At the crude stage, utilization increased 0.9 percentage point to 87.4 per cent, a rate 1.1 percentage points above its long-run average; at the primary and semifinished stages, utilization declined 0.2 percentage point to 75.5 per cent, a rate 5.5 percentage points below its long-run average; and at the finished stage, utilization moved down 0.5 percentage point to 75.6 per cent, a rate 1.5 percentage points lower than its long-run average.
Rebasing of Gross Value of Products Series
With the October 17, 2013, release of the G.17, the comparison base year for the data in Table 9, Gross Value of Final Products and Nonindustrial Supplies, and in Table 10, Gross-Value-Weighted Industrial Production: Stage-of-Process Groups, will be advanced to 2009 to conform with the comparison base year of the national income and product accounts issued by the Bureau of Economic Analysis.
Note. The statistics in this release cover output, capacity, and capacity utilization in the U.S. industrial sector, which is defined by the Federal Reserve to comprise manufacturing, mining, and electric and gas utilities. Mining is defined as all industries in sector 21 of the North American Industry Classification System (NAICS); electric and gas utilities are those in NAICS sectors 2211 and 2212. Manufacturing comprises NAICS manufacturing industries (sector 31-33) plus the logging industry and the newspaper, periodical, book, and directory publishing industries. Logging and publishing are classified elsewhere in NAICS (under agriculture and information respectively), but historically they were considered to be manufacturing and were included in the industrial sector under the Standard Industrial Classification (SIC) system. In December 2002 the Federal Reserve reclassified all its industrial output data from the SIC system to NAICS.
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