Industrial production fell back 0.4 percent in September after advancing 0.8 percent in August. For the third quarter, industrial production rose at an annual rate of 1.2 percent following declines of about 2 percent in both the first and the second quarters.
Manufacturing production decreased 0.5 percent in September, with output reduced by a strike at a major manufacturer of motor vehicles. Excluding motor vehicles and parts, the overall index and the manufacturing index each moved down 0.2 percent. Mining production fell 1.3 percent, while utilities output rose 1.4 percent.
At 109.5 percent of its 2012 average, total industrial production was 0.1 percent lower in September than it was a year earlier. Capacity utilization for the industrial sector decreased 0.4 percentage point in September to 77.5 percent, a rate that is 2.3 percentage points below its long-run (1972–2018) average.
Industrial Production and Capacity Utilization: Summary
|Industrial production||2012=100||Percent change|
|2019||2019|| Sept. '18 to
|Major market groups|
|Major industry groups|
|Manufacturing (see note below)||104.3||104.5||105.0||104.7||105.2||104.8||-.9||.1||.6||-.4||.6||-.5||-.9|
The cutback in motor vehicle output in September contributed to a drop of nearly 2 percent for consumer durables and to declines of around 1 percent for transit equipment and for durable goods materials. The indexes for many of the other market groups were relatively little changed, but gains of more than 1 percent were posted by consumer energy products, by information processing equipment, and by defense and space equipment, while a loss of more than 1 percent was recorded by industrial and other equipment.
Manufacturing output fell 0.5 percent in September but rose at an annual rate of 1.1 percent in the third quarter. In September, the motor vehicle industry strike contributed to a drop of 0.7 percent for durables; the index for nondurables declined 0.2 percent, while the index for other manufacturing (publishing and logging) rose 0.5 percent. Excluding the decrease of 4.2 percent for motor vehicles and parts, the output of durables edged down 0.1 percent, with decreases of nearly 1 percent or more in primary metals; machinery; and electrical equipment, appliances, and components. Gains of nearly 1 percent or more were recorded by computer and electronic products, by aerospace and miscellaneous transportation equipment, and by furniture and related products. Among nondurable goods industries, apparel and leather posted the largest gain (2.3 percent), while plastics and rubber products posted the largest loss (1.2 percent).
Mining output moved down 1.3 percent in September; reductions in crude oil extraction and well drilling contributed to the decline. The index for mining fell at an annual rate of 4.4 percent in the third quarter, its first quarterly decrease in three years. The output of utilities moved up 1.4 percent in September, as unseasonably warm weather boosted demand for electricity.
Capacity utilization for manufacturing decreased 0.4 percentage point to 75.3 percent in September, a rate that is 3.0 percentage points below its long-run average. The operating rate for durables dropped 0.7 percentage point, while the rate for nondurables decreased 0.3 percentage point. The utilization rate for mining fell to 88.9 percent yet was still almost 2 percentage points higher than its long-run average. The rate for utilities rose 0.9 percentage point but remained well below its long-run average.
G.17 Release Tables:
- Summary: Industrial Production and Capacity Utilization
- Chart 1: Industrial Production, Capacity, and Capacity Utilization
- Chart 2: Industrial Production and Capacity Utilization
- Chart 3: Industrial Production of Selected Industries
- Table 1: Industrial Production: Market and Industry Groups (percent change)
- Table 2: Industrial Production: Special Aggregates and Selected Detail (percent change)
- Table 3: Motor Vehicle Assemblies
- Table 4: Industrial Production Indexes: Market and Industry Group Summary
- Table 5: Industrial Production Indexes: Special Aggregates
- Table 6: Diffusion Indexes of Industrial Production
- Table 7: Capacity Utilization: Manufacturing, Mining, and Utilities
- Table 8: Industrial Capacity: Manufacturing, Mining, and Utilities (percent change)
- Table 9: Industrial Production: Gross Value of Products and Nonindustrial Supplies
- Table 10: Gross-Value-Weighted Industrial Production: Stage-of-Process Groups
- Table 11: Historical Statistics for IP, Capacity, and Utilization: Total Industry
- Table 12: Historical Statistics for IP, Capacity, and Utilization: Manufacturing
- Table 13: Historical Statistics for IP, Capacity, and Utilization: Total Industry excluding Selected High-Technology Industries
- Table 14: Historical Statistics for IP, Capacity, and Utilization: Manufacturing excluding Selected High-Technology Industries
- Table 15: Industrial Production: Reliability Estimates