Skip to Main Content

Article Attachment

The attached file contains this articles commentary as well as tables and charts of the data.

Industrial Production: Trend Improving But Level Still Low

November 16, 2016
Bottom Line: Industrial activity increased only slightly in October with revisions now showing activity shrank in September. Industrial output growth is still declining slightly on a year-over-year basis. While the year-on-year changes in Mining output and Utility production are starting to stabilize due to base effects, year-on-year growth across other industries remains modest, holding total annualized gains for the last 6 months below 1%.

Industrial Production ROSE by 0.1% in October, compared with market expectations for an increase of 0.2%. Moreover, the prior month was revised from 0.1% down to -0.3%. Output is now 0.8% BELOW its year ago level.

In October, Mining Output ROSE by 2.0%, and is still 7.0% BELOW its year ago level. Utility Generation FELL by 2.6% and is now just 0.1% BELOW its year ago level.

Manufacturing Output ROSE by 0.2% and is now only 0.2% BELOW its year ago level. Output in high-tech industries rose by 1.0%. Meanwhile, output in the motor vehicle industry rose by 0.8%. Excluding both the high-tech and motor vehicles industries, industrial output climbed by 0.1%.

Capacity Utilization FELL by 0.1 points to 75.3%, compared with market expectations for a higher increase to 75.5%. Moreover, the prior month was revised from 75.4% to 75.4%. Capacity utilization rate is now 1.0 percentage points below its year ago level and 4.7 percentage points below its long-run (1972–2015) average.