Industrial Production & Capacity Utilization for August 2009

Seems we have another cash for clunkers wonder. Minus autos industrial production increased 0.4%. So, this is the second month industrial production rose.

Industrial output rose 0.8 percent in August, following an upwardly revised increase of 1.0 percent in July. Production in manufacturing expanded 0.6 percent in August, and the index excluding motor vehicles and parts increased 0.4 percent. The gain in July for manufacturing was revised up 0.4 percentage point, to 1.4 percent; in addition, factory output for April through June is now somewhat less weak than reported previously. Production at mines moved up 0.5 percent in August. The output of utilities gained 1.9 percent, as temperatures swung from an unseasonably mild July to a slightly warmer-than-usual August. At 97.4 percent of its 2002 average, total industrial production was 10.7 percent below its level of a year earlier. In August, the capacity utilization rate for total industry advanced to 69.6 percent, a level 11.3 percentage points below its average for the period 1972 through 2008.

Total industry capacity utilization up is good news as well for this implies job creation as new hires are needed to increase total output.

I would get carried away with these numbers, it still shows a fairly lukewarm recovery, esp. with the manufacturing sector capacity still at 66.6% , which is 13% below the 1972-2008 average and 8.7% below a year ago.

August industrial production, capacity utilization, capacity


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