Industrial Production Up 0.4% in November

Industrial Production Up 0.4% in November

According to the Industrial Production and Capacity Utilization Report, manufacturing output increased 0.8% during the month; year-to-date industrial production has improved but is still 5% below its pre-pandemic level.
NetPlus names new marketing manager

Total industrial production grew 0.4% in November, according to the Industrial Production and Capacity Utilization Report, released Tuesday by the Federal Reserve. The index has recovered much of its 16.5% decline from February to April, but output in November was still 5% lower than its pre-pandemic February level.

After edging up 1% in October, manufacturing output increased 0.8% in November for its seventh consecutive monthly gain. An increase of 5.3% for motor vehicles and parts contributed significantly to the gain in factory production; excluding motor vehicles and parts, manufacturing output moved up 0.4%. The output of utilities declined 4.3%, as warmer-than-usual temperatures reduced the demand for heating. Mining production increased 2.3% after decreasing 0.7% in October.

At 104.0% of its 2012 average, total industrial production was 5.5% lower in November than it was a year earlier. Capacity utilization for the industrial sector increased 0.3% in November to 73.3%, a rate that is 6.5% below its long-run (1972–2019) average but 9.1% above its low in April.

The major market groups posted mixed results in November. The step-down in the index for utilities contributed to declines in the indexes for consumer goods and for business supplies. The index for business equipment rose 2%, supported in part by a sizable increase in the production of motor vehicles as well as by continued recovery in the production of commercial aircraft. The output of materials rose 0.7%, with similarly sized gains for each of its three main components  — durable, nondurable and energy materials.

Manufacturing output increased 0.8% in November to a level that was 3.8% below its pre-pandemic reading. The index for durable manufacturing rose 1.5% with widespread gains across its components. In addition to the large increase for motor vehicles and parts, output moved up notably for primary metals, for computers and electronics, for aerospace and miscellaneous transportation equipment, and for miscellaneous manufacturing. The index for nondurables edged up 0.1% in November after posting an increase of 1.4% in October.

The index for utilities dropped 4.3% in November, with declines for both electric and natural gas utilities. Mining production rose 2.3%; all of its major components posted gains of more than 1-1/2%.

Capacity utilization for manufacturing moved up 0.6% in November to 72.6%, 12.5% higher than its trough in April but still 5.6% below its long-run average. The utilization rate for mining increased to 79.4%; it remained well below its long-run average of 87.2%. The operating rate for utilities declined to 70.2%, a rate that is 15% below its long-run average.

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!