Industrial production increased 0.4 percent in August, according to the Federal Reserve.
Manufacturing output grew 0.1 percent. August’s manufacturing reading was limited by a 5 percent drop in the output of motor vehicles and parts; factory output elsewhere increased 0.6 percent.
Within durable manufacturing, more than 1 percent increases were experienced in primary metals; machinery; aerospace; miscellaneous transportation equipment; furniture and related products; and miscellaneous.
“Apart from the large drop in the index for motor vehicles and parts, small declines — all less than 1 percent — were registered by wood products; nonmetallic mineral products; fabricated metal products; and electrical equipment, appliances and components,” the Fed stated.
Manufacturing capacity utilization remained at 77.9 percent in August, 0.3 percentage points below its 50-year average. The index for mining increased 1.4 percent, and the utilities index climbed 0.9 percent. At 103.5 percent of its 2017 average, total industrial production last month was 0.2 percent higher than its year-earlier level.
Capacity utilization increased to 79.7 percent, corresponding with its previous 50-year average. The operating rate for utilities increased 0.4 percentage points to 73 percent, well under its long-term average. Sparked by a more than 3 percent increase in the index for oil and gas extraction, mining output increased 1.4 percent last month and 3.9 percent on an annual basis. The output of utilities increased 0.9 percent.
The index for consumer nondurables increased 0.4 percent, and the index for materials grew 0.7 percent. Within materials, energy materials increased 1.5 percent, while non-energy materials grew 0.1 percent. The production of space and defense equipment grew 3.5 percent in August and has increased more than 10 percent from its year-ago mark.
“The drop in the output of motor vehicles and parts contributed to declines in the indexes for consumer durables and transit equipment,” the Federal Reserve stated. “Most of the other major market groups posted increases in August.”