2014 Economic Calendar
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Industrial Production  
Released On 5/15/2014 9:15:00 AM For Apr, 2014
PriorPrior RevisedConsensusConsensus RangeActual
Production - M/M change0.7 %0.9 %0.0 %-0.3 % to 0.3 %-0.6 %
Manufacturing - M/M0.5 %0.7 %0.4 %0.0 % to 0.4 %-0.4 %
Capacity Utilization Rate - Level79.2 %79.3 %79.2 %78.9 % to 79.4 %78.6 %
cap util - level79.206 index level

Industrial production in April disappointed with a notable decline but perhaps expectations were too high after strong gains the prior two months. April industrial production declined 0.6 percent, following gains of 0.9 percent in March and 1.1 percent in February. Analysts forecast April to come in at flat.

By major components, manufacturing decreased 0.4 percent, following increases of 0.7 percent in March and 1.5 percent in February. Market expectations for April were for a 0.4 percent boost. For the latest month, manufacturing excluding motor vehicles fell 0.4 percent after advancing 0.7 percent in March and 1.2 percent in February.

Mining increased 1.4 percent after a 2.0 percent boost in March. Utilities plunged 5.3 percent in April, following a 0.6 percent rise the month before.

Capacity utilization declined to 78.6 percent from 79.3 percent in March.

Again, April's weakness simply may be coming off two strong months. Manufacturing data have been pointing to improvement in this sector-including durables orders, national manufacturing surveys, and regional manufacturing surveys.

Consensus Outlook
Industrial production in March topped expectations on utilities but the manufacturing component was still quite healthy. Industrial production advanced 0.7 percent, following a rebound of 1.2 percent in February. By major components, manufacturing increased 0.5 percent, following a 1.4 percent jump in February. Analysts projected a 0.5 percent gain. Mining increased 1.5 percent in March after a 0.9 percent boost the month before. Utilities jumped 1.0 percent after dipping 0.3 percent in February. Manufacturing excluding motor vehicles increased 0.6 percent in March, following a 1.1 percent jump in February. Capacity utilization rose to 79.2 percent from 78.8 percent in February. Expectations were for 78.7 percent.

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
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
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

2014 Release Schedule
Released On: 1/172/143/174/165/156/167/168/159/1510/1611/1712/15
Release For: DecJanFebMarAprMayJunJulAugSepOctNov

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