Industrial production edged down 0.1 percent in January following four consecutive monthly increases, according to the latest Federal Reserve statistical release. Manufacturing production was unchanged in January. Mining output fell 1 percent, with all of its major component industries recording declines, while the index for utilities moved up 0.6 percent. At 107.2 percent of its 2012 average, total industrial production was 3.7 percent higher in January than it was a year earlier. Capacity utilization for the industrial sector fell 0.2 percentage point in January to 77.5 percent, a rate that is 2.3 percentage points below its long-run (1972–2017) average.
In January, the output of consumer goods moved up 0.3 percent; much of the gain reflected an increase of 1 percent for consumer energy products. The output of durable consumer goods rose 0.5 percent, while the output of non-energy nondurables was unchanged. Business equipment registered a gain of 0.9 percent mostly as a result of advances of 1 percent or more posted by information processing equipment and by industrial and other equipment. The index for defense and space equipment slipped 0.2 percent after having increased in six of the previous seven months. The output of construction supplies dropped 1.4 percent, while the index for business supplies fell back 0.2 percent. The production of materials moved down 0.3 percent, with consumer parts and paper materials posting drops that were greater than 1 percent.
Manufacturing output was unchanged in January for a second consecutive month; the index has increased 1.8 percent over the past 12 months. Major manufacturing industries recorded a broad mix of gains and losses in
January. The production of durables moved up 0.2 percent, and the index for nondurables was unchanged. The output of other manufacturing (publishing and logging) fell 1.4 percent.
In January, the output of mining declined 1 percent for a second consecutive monthly loss. Even so, the mining index for January was 8.8 percent higher than its year-earlier level because of strength in the oil and natural gas sector. Capacity utilization for manufacturing was unchanged in January at 76.2 percent, a rate that is 2.1 percentage points below its long-run average. The operating rate for durables, at 76.1 percent, was less than 1 percentage point below its long-run average, whereas the rates for nondurables and for other manufacturing (publishing and logging), at 77.4 percent and 60.1 percent, respectively, were further below their long-run averages of about 80 percent for each. Utilization for mining fell 1.4 percentage points to 84.2 percent, but the rate for utilities rose 0.3 percentage point to 81.1 percent. Capacity utilization rates for both mining and utilities remained below their long-run averages.
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