by Bill McBride on 7/15/2010 09:30:00 AM
Thursday, July 15, 2010
From the Fed: Industrial production and Capacity Utilization
Industrial production edged up 0.1 percent in June after having risen 1.3 percent in May. ... For the second quarter as a whole, total industrial production increased at an annual rate of 6.6 percent. Manufacturing output moved down 0.4 percent in June after three months of gains at or near 1 percent. The output of mines rose 0.4 percent. The output of utilities increased 2.7 percent, as temperatures moved further above seasonal norms. At 92.5 percent of its 2007 average, total industrial production in June was 8.2 percent above its year-earlier level. The capacity utilization rate for total industry remained unchanged in June at 74.1 percent, a rate 5.9 percentage points above the rate from a year earlier but 6.5 percentage points below its average from 1972 to 2009.Click on graph for larger image in new window.
This graph shows Capacity Utilization. This series is up 8.7% from the record low set in June 2009 (the series starts in 1967).
Capacity utilization at 74.1% is still far below normal - and well below the the pre-recession levels of 81.2% in November 2007.
Note: y-axis doesn't start at zero to better show the change.
The second graph shows industrial production since 1967.
This is the highest level for industrial production since Nov 2008, but production is still 7.9% below the pre-recession levels at the end of 2007.
Still a long way to go.
Posted by Bill McBride on 7/15/2010 09:30:00 AM