Manufacturing Production Increased 0.2% in December - Modern Distribution Management

Log In

Manufacturing Production Increased 0.2% in December


Industrial production declined 0.3% in December, as a decrease of 5.6% for utilities outweighed increases of 0.2% for manufacturing and 1.3% for mining, according to the latest data from the Federal Reserve.

For the fourth quarter as a whole, total industrial production moved down at an annual rate of 0.5%. At 109.4% of its 2012 average, total industrial production was 1% lower in December than it was a year earlier. Capacity utilization for the industrial sector fell 0.4% in December to 77%, a rate that is 2.8% below its long-run (1972–2018) average.

Manufacturing output increased 0.2% in December but decreased at an annual rate of 1.0% in the fourth quarter. The gain in December came despite a decrease of 4.6% for motor vehicles and parts; assemblies of light motor vehicles fell from 11.2 million units (annual rate) in November to 10.3 million units in December. Excluding the motor vehicle sector, factory output rose 0.5%. The index for durable goods manufacturing slipped 0.2%, as the decrease for motor vehicles outweighed widespread increases in other industries. The index for nonmetallic mineral products advanced 2.3% for the largest gain among durables. The production of nondurables moved up 0.6%, led by increases of more than 1% for petroleum and coal products and for food, beverage, and tobacco products. The output of other manufacturing (publishing and logging) decreased 0.2%. Mining output rose 1.3%, with most of the gain from oil and gas extraction; the index for mining rose at an annual rate of about 2% in the fourth quarter to reverse a similarly sized decrease in the third quarter.

Capacity utilization for manufacturing edged up 0.1% in December to 75.2%, about 3.1% below its long-run average. The utilization rate for mining increased to 89.6%, remaining above its long-run average of 87.1%. The operating rate for utilities fell to 73.5%, a rate that is about 12% below its long-run average.

Related Posts

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!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to, 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
  • 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



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
  • 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.