Still More Bad News

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Industrial Production Weakens, Disappoints Market

Industrial production was unchanged in April after having increased 0.7 percent in March. Output in February is now estimated to have declined 0.3 percent; previously it was reported to have edged up 0.1 percent. In April, manufacturing production fell 0.4 percent after rising for nine consecutive months. Total motor vehicle assemblies dropped from an annual rate of 9.0 million units in March to 7.9 million units in April, mainly because of parts shortages that resulted from the earthquake in Japan. Excluding motor vehicles and parts, factory production rose 0.2 percent in April. The output of mines advanced 0.8 percent, while the output of utilities increased 1.7 percent. At 93.1 percent of its 2007 average, total industrial production was 5.0 percent above its year-earlier level. The rate of capacity utilization for total industry edged down 0.1 percentage point to 76.9 percent, a rate 3.5 percentage points below its average from 1972 to 2010.

Capacity Utilization Is a Wash

August Industrial Production came in at 0.2%, in line with expectations, while the prior print of 1.0% was revised lower to 0.6%. Capacity Utilization missed consensus sllightly, coming in at 74.7% on consensus of 75%, with the previous reading also revised lower from 74.8% to 74.6%. Overall, no pick up in the economy can be traced across these two metrics, meaning the double dip continues.