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Industrial Production:  Slower January With Negative Revisions to Q4

February 15, 2018
Bottom Line: Bottom Line: Industrial production in January was sharply lower than expected and previous data was revised to show slower growth in the 4th Quarter of last year. Industrial output growth is still growing modestly on a year-over-year basis, led by tech. Mining output fell slightly while manufacturing output rose but is still only 1.7% above its year ago levels.

Industrial Production FELL by 0.05% in January, compared with market expectations for an increase of 0.2%. Moreover, the prior month was revised from 0.9% down to 0.4%. Output is now 3.7% ABOVE its year ago level.

In January, Mining Output FELL by 1.0%, and is now 8.8% ABOVE its year ago level. Utility Generation ROSE by 0.6% and is now 10.9% ABOVE its year ago level.

Manufacturing Output ROSE by 0.1% but is now only 1.7% ABOVE its year ago level. Output in high-tech industries rose by 0.9%. Meanwhile, output in the motor vehicle industry rose by 0.5%.

Excluding both the high-tech and motor vehicles industries, industrial output decreased by 0.1%.

Capacity Utilization FELL by 0.2 points to 77.5%, compared with market expectations for a higher increase to 78.0%. Moreover, the prior month was revised from 77.9% to 77.7%. Capacity utilization rate is now 1.8 percentage points above its year ago level and 2.5 percentage points below its long-run (1972–2015) average.