June industrial production inches higher
The Federal Reserve reported that industrial production edged up 0.1 percent in June after having risen 1.3 percent in May.
For the second quarter as a whole, total industrial production increased at an annual rate of 6.6 percent.
In June, manufacturing output fell 0.4 percent after moving up for three consecutive months. The manufacturing index increased at an annual rate of 7.9 percent for the second quarter as a whole, a gain similar to the average quarterly increase since production turned up in the third quarter of 2009. Capacity utilization for manufacturing moved down 0.3 percentage point in June to 71.4 percent, a rate 6.0 percentage points above its trough in June 2009 but 7.8 percentage points below its average from 1972 to 2009.
"The decline in factory production was primarily concentrated in consumer-related industries such as motor vehicles, home construction materials (wood products, furniture), and food," said Daniel J. Meckstroth, Ph.D., chief economist of the Manufacturers Alliance/MAPI. "After a growth spurt earlier this year based primarily on the inventory cycle, the rest of the year's activity will depend more on fundamentals. For the consumer, meager job gains and the need to repay debt are still constraints on spending growth. Fortunately, business equipment industries are rebounding at a surprisingly strong pace in light of the widespread surplus capacity in manufacturing and in the general economy."
The production index for durable goods manufacturing edged up 0.1 percent in June. Among its major categories, the largest increases were in primary metals and machinery, whereas the largest decreases were recorded in wood products, motor vehicles and parts, and miscellaneous manufacturing. For the second quarter as a whole, durable manufacturing increased at an annual rate of 14.1 percent, with sizable gains recorded in every major category except aerospace and miscellaneous transportation equipment.
The index for nondurable manufacturing decreased 0.7 percent in June; lower production in most nondurable categories more than offset gains in apparel and leather, petroleum and coal products, and plastics and rubber products. For the second quarter as a whole, nondurables output moved up at an annual rate of 2.2 percent. Production in the non-NAICS manufacturing industries (logging and publishing) fell 2.1 percent in June.
INDUSTRIAL SUPPLY MAGAZINE
The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
