Industrial production increased 0.1 percent in December but fell 3.1 percent on an annualized rate in the fourth quarter of last year, according to a recent Federal Reserve report.
Manufacturing output increased 0.1 percent last month after rising 0.2 percent in November but fell 2.2 percent on an annualized rate in the fourth quarter. The index for utilities fell 1 percent last month, while the index for mining increased 0.9 percent.
Excluding motor vehicles and parts, factory output fell 0.1 percent in December and 0.3 percent in the fourth quarter. The index for durable manufacturing fell 0.4 percent in December, while the index for nondurable manufacturing increased 0.6 percent. The index for publishing and logging manufacturing fell 1.1 percent.
“Within durables, declines of more than 1 percent were recorded by wood products, by fabricated metal products, by machinery, and by electrical equipment, appliances and components,” according to the Federal Reserve. “Motor vehicles and parts as well as furniture and related products posted gains of more than 1 percent. Within nondurables, most industries registered gains with the exception of paper and of printing and support.”
At 102.5 percent of its 2017 average, total industrial production last month was 1 percent higher than its year-earlier mark. Capacity utilization was unchanged in December at 78.6 percent, which was 1.1 percentage points under its long-term average.
The production of consumer goods increased 0.2 percent, mainly from gains in durable consumer goods. The production of nondurable consumer goods was flat. The indexes of business supplies, construction supplies and business equipment all slightly fell in December. The output of defense and space equipment increased a half-percent in December, rising 9.1 percent on an annual rate in the fourth quarter. Materials output increased in December, as a slight decline in non-energy was more than offset by a half-percent rise in the energy component.
Annualized fourth quarter numbers were negative. The output of mines dropped 3.4 percent after increasing in the previous two quarters. The index for utilities fell 8.2 percent in the fourth quarter after increasing more than 15 percent in the previous quarter.
Capacity utilization for manufacturing was unchanged at 77.1 percent, which is 1.1 percentage points below its long-term average. The operating rate for mining increased 0.9 percentage points to 93.8 percent, which is 7.4 percentage points higher than its long-term average. The operating rate for utilities fell 0.9 percentage points to 70 percent, also well under its long-term average.