2017 Economic Calendar
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Industrial Production  
Released On 12/15/2017 9:15:00 AM For Nov, 2017
PriorPrior RevisedConsensusConsensus RangeActual
Production - M/M change0.9 %1.2 %0.3 %0.1 % to 0.6 %0.2 %
Manufacturing - M/M1.3 %1.4 %0.3 %0.2 % to 0.5 %0.2 %
Capacity Utilization Rate - Level77.0 %77.2 %76.9 % to 77.4 %77.1 %

Highlights
A rise for mining offsets a dip for utilities making a modest 0.2 percent gain for manufacturing the story for November's industrial economy. This report's manufacturing component has been the only uneven indicator on the factory sector all year which limits the surprise of November's results.

Forecasters weren't calling for much strength in the first place with Econoday's consensus at only 0.3 percent for manufacturing. Vehicle production, after a run of strength, understandably eased in November to only a 0.1 percent increase with selected hi-tech also slowing but to a still useful 0.3 percent gain. And production of business equipment was even more positive at 0.5 percent and with construction supplies at 0.6 percent. Weakness on the manufacturing side is once again in consumer goods where volumes fell 0.4 percent to underscore the nation's lack of competitiveness in this important category.

Outside of manufacturing, mining volumes rose 2.0 percent in November to extend its leading performance to year-on-year growth of 9.4 percent. Utility output fell 1.9 percent with this year-on-year rate at 2.3 percent. Turning back for a comparison with manufacturing, this year-on-year rate is a very modest 2.4 percent.

Overall industrial production rose 0.2 percent while capacity utilization rose 1 tenth to a 77.1 percent rate that, in contrast to the slew of anecdotal readings on the factory sector, points to plenty of spare capacity remaining. One notable positive in today's report is an upward revision to October's manufacturing production which now stands at a very outsized 1.4 percent, an isolated gain however that reflects hurricane effects.

Given the strength of October manufacturing and despite November's modest showing, most signals are pointing to an accelerating factory contribution to the fourth-quarter economy. Note that traditional non-NAICS numbers for industrial production may differ marginally from NAICS basis figures.

Recent History Of This Indicator
Though choppy through the hurricane season, industrial production snapped back with a 0.9 percent gain in October while the manufacturing component, after posting a solid September gain, surged 1.3 percent. Forecasters see easing in November with the consensus gain at 0.3 percent for both total production and for manufacturing production.

Definition
The Federal Reserve's monthly index of industrial production and the related capacity indexes and capacity utilization rates cover manufacturing, mining, and electric and gas utilities. The industrial sector, together with construction, accounts for the bulk of the variation in national output over the course of the business cycle. The production index measures real output and is expressed as a percentage of real output in a base year, currently 2012. The capacity index, which is an estimate of sustainable potential output, is also expressed as a percentage of actual output in 2012. The rate of capacity utilization equals the seasonally adjusted output index expressed as a percentage of the related capacity index.

The index of industrial production is available nationally by market and industry groupings. The major groupings are comprised of final products (such as consumer goods, business equipment and construction supplies), intermediate products and materials. The industry groupings are manufacturing (further subdivided into durable and nondurable goods), mining and utilities. The capacity utilization rate -- reflecting the resource utilization of the nation's output facilities -- is available for the same market and industry groupings.

Industrial production was also revised to NAICS (North American Industry Classification System) in the early 2000s. Unlike other economic series that lost much historical data prior to 1992, the Federal Reserve Board was able to reconstruct historical data that go back more than 30 years.  Why Investors Care
 
[Chart]
The industrial sector accounts for less than 20 percent of GDP. Yet, it creates much of the cyclical variability in the economy.
Data Source: Haver Analytics
 
[Chart]
The capacity utilization rate reflects the limits to operating the nation's factories, mines and utilities. In the past, supply bottlenecks created inflationary pressures as the utilization rate hit 84 to 85 percent.
Data Source: Haver Analytics
 
 

2017 Release Schedule
Released On: 1/182/153/174/185/166/157/148/179/1510/1711/1612/15
Release For: DecJanFebMarAprMayJunJulAugSepOctNov
 


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