A newly released report from the U.S. Federal Reserve showed industrial production grew by less than one percent in October.
Following is a summary of the report:
The production of durable consumer goods strengthened 2.1 percent, primarily owing to a jump in the output of automotive products. In addition, the production of defense and space equipment increased 0.9 percent in October after having edged down 0.1 percent in September. The production indexes for home electronics and for appliances, furniture, and carpeting also rose, while the output of miscellaneous goods fell slightly. The production of nondurable consumer goods was unchanged, as a contraction in the output of consumer energy products offset a pickup in the production of other nondurable consumer goods. The gain for non-energy nondurables reflected higher output for each of its major categories except paper products.
In October, the output of business equipment moved up 1.0 percent and was 10.2 percent above its year-earlier level. The index for transit equipment climbed 3.0 percent in October and has increased 22.2 percent over the past 12 months. The index for information processing equipment advanced 1.0 percent in October, its fourth consecutive monthly gain of 1.0 percent or more. The production of industrial and other equipment was unchanged in October but has risen 6.5 percent over the past 12 months.
The index for construction supplies was up 0.1 percent in October and was little changed, on net, over the past three months. The output of business supplies slipped 0.1 percent in October, its third consecutive monthly decline. The decreases over recent months primarily reflected lower output of commercial energy products; the output of non-energy business supplies increased slightly in both September and October and edged down in August. The index for materials to be further processed in the industrial sector gained 0.9 percent in October, which more than reversed its losses over the previous two months.
Manufacturing output increased 0.5 percent in October and was 4.1 percent above its year-earlier level. In October, the factory operating rate moved up to 75.4 percent, a rate 11.0 percentage points above its trough in June 2009 but still 3.6 percentage points below its long-run average.
The output of durable goods increased 0.8 percent in October and has gained 7.8 percent in the past 12 months. Advances of at least 2 percent were reported in October for electrical equipment, appliances, and components; motor vehicles and parts; and aerospace and miscellaneous transportation equipment. In contrast, losses of 2 percent or more occurred for wood products and nonmetallic mineral products.
The index for nondurable manufacturing rose 0.2 percent in October. Among the major components of nondurables, the output of apparel and leather jumped 2.8 percent, and gains were also registered for food, beverage, and tobacco products; chemicals; and plastics and rubber products. Decreases were recorded for textile and product mills, paper, printing, and petroleum and coal products. The index for other manufacturing (non-NAICS), which consists of publishing and logging, declined 0.2 percent.
The complete October U.S. industrial report is available online.