Industrial Production Down 0.1% in August - Modern Distribution Management

Log In

Industrial Production Down 0.1% in August

The output of utilities rose 1 percent.
Author
Date

The index of industrial production edged down 0.1 percent in August, and the index for manufacturing output decreased 0.4 percent; the declines were the first for each since January.

The gains in July for both indexes were revised down. The declines in total industrial production and in manufacturing output in August reflected a decrease of 7.6 percent in the production of motor vehicles and parts, which had jumped more than 9 percent in July.

The August decline in manufacturing production should not be a cause for concernthe correction was predictable and centered on motor vehicle production, said Daniel Meckstroth, chief economist for the Manufacturers Alliance for Productivity and Innovation. Motor vehicles assemblies increased 12.9% in July with an inventory rebuilding surge and then declined 11.7% in August to get back to a more sustainable production rate. The swing in motor vehicle production reverberated throughout the supply chain. The August decline in manufacturing production, consequently, was not widespread. Among the 20 manufacturing industries, 10 experienced increased production in August, 2 were flat and 8 declined.”

Excluding motor vehicles and parts, factory output rose 0.1 percent in both July and August. The production at mines moved up 0.5 percent in August, and the output of utilities rose 1 percent.

At 104.1 percent of its 2007 average, total industrial production in August was 4.1 percent above its year-earlier level. Capacity utilization for total industry decreased 0.3 percent in August to 78.8 percent, a rate 1 percentage point above its level of a year earlier and 1.3 percentage points below its long-run (1972–2013) average.

Manufacturing production decreased 0.4 percent in August after having gained 0.7 percent in July. The factory operating rate dropped 0.4 percentage point in August to 77.2 percent, a rate 1.5 percentage points below its long-run average.

The production of durable goods declined 0.9 percent in August but was 5.6 percent higher than its year-earlier level. In August, the decrease in durables largely reflected the drop in the index for motor vehicles and parts.

For more information, download the PDF below.

Click Here


Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.