Decline in Manufacturing and Mining Offset Jump in Utilities
The Federal Reserve said industrial production dipped slightly in July, as manufacturing offset a jump in utilities to miss the forecast. Industrial production, which has fallen more than 1.5% since December 2018, was revised higher for June from flat to 0.2%.
|Indicator||Prior||Prior Revised||Consensus Forecast||Forecast Range||Actual|
|Production – M/M ∆||0.0%||0.2%||0.1%||-0.4% to 0.4%||-0.2%|
|Manufacturing – M/M ∆||0.4%||0.6%||-0.1%||-0.3% to 0.1%||-0.4%|
|Capacity Utilization Rate – Level||77.9%||77.8%||77.8%||77.7% to 78.2%||77.5%|
In July, mining output declined sharply 1.8%, though it is expected to be temporary due to Hurricane Barry. The storm hurt oil extraction in the Gulf of Mexico. The index for utilities, which is impacted by weather, increased 3.1%.
At 109.2 percent of its 2012 average, total industrial production was 0.5% higher in July than it was a year earlier.
Capacity utilization for the industrial sector fell 0.3% in July to 77.5%, a rate that is 2.3% below its long-run (1972–2018) average.