Manufacturing output declines in January
Industrial production edged down 0.1% in January after recording no change in December, according to data released from the Federal Reserce Board of Governors.
In January, manufacturing output declined 0.5% and mining output fell 2.3%; winter weather contributed to the declines in both sectors.
The index for utilities jumped 6.0%, as demand for heating surged following a move from unusually mild temperatures in December to unusually cold temperatures in January. At 102.6% of its 2017 average, total industrial production in January was identical to its year-earlier level. Capacity utilization for the industrial sector moved down 0.2% point in January to 78.5%, a rate that is 1.1 percentage points below its long-run (1972–2023) average.
Market Groups
The major market groups posted mixed results in January. The index for consumer goods rose 0.6 percent with modest gains in its durable and nondurable components. The indexes for business equipment, construction supplies, and business supplies all declined less than 1 percent; the index for construction supplies was 4.1% below its year-earlier level. Meanwhile, the output of defense and space equipment continued to post solid growth in January and was over 13% above its year-earlier level. Materials output decreased 0.4% in January, as the non-energy component decreased 0.7%, while the energy component edged up 0.1%.
Industry Groups
Manufacturing output fell 0.5% in January; the index for durable manufacturing edged up 0.1%, while the index for nondurable manufacturing fell 1.1%. The index for other manufacturing (publishing and logging) moved down 0.2%. Among durables, the largest gains were recorded in electrical equipment, appliances, and components as well as in aerospace and miscellaneous transportation equipment. Computer and electronic products also moved up in January, in part based on the continued strength in semiconductor production. Nonmetallic mineral products and primary metals recorded declines of around 1 percent. Declines were widespread among nondurables, with notable weather-related decreases in the indexes of petroleum and coal products, chemicals, and plastics and rubber products.
In January, mining output fell 2.3% amid a weather-related pullback in oil and gas extraction and a drop in coal production. The output of utilities jumped 6.0% as electric and natural gas utilities output increased 4.7% and 13.9%, respectively.
Capacity utilization for manufacturing decreased to 76.6% in January, a rate that is 1.6 percentage points below its long-run average. The operating rate for mining decreased 2.3 percentage points to 92.2%, a rate that is 5.7 percentage points above its long-run average. The operating rate for utilities moved up 4.0 percentage points to 74.2%, well below its long-run average of 84.4%.
INDUSTRIAL SUPPLY MAGAZINE
The November/December issue of Industrial Supply magazine features an in-depth cover story about Kimball Midwest. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and Mike Marks, as well as interviews with numerous product and distribution industry experts.
