Post by unlawflcombatnt on Nov 16, 2007 17:08:47 GMT -6
Industrial Production was much worse than predicted. The decline of -0.5% was far below the predicted +0.1% gain. Below is a bar graph from Briefing.com showing the monthly trend.
Below are highlights of the the Federal Reserve's
Industrial Production report
1-month changes:
*Industrial production decreased -0.5% in October.
*Manufacturing output fell -0.4%[/b] in October
*Utilities output dropped -1.6%.
October-to-October changes:
*Industrial production in October was 1.8 percent above its year-earlier level.
*Capacity utilization for total industry declined to 81.7 percent, a rate equal to its year-earlier level
A decline in Capacity Utilization indicates declining demand for production, as well as production workers. It can be summarized as follows:
Capacity Utilization Decline =
Production Demand Decline =
Labor Demand Decline=
Employment Decline AND Wage Decline
more from the Fed report:
"The output of consumer goods dropped -0.7%[/color][/b] in October; the decreases were widespread. Among durable consumer goods, the production index for automotive products moved down 0.6 percent, its 3rd consecutive monthly decline...."
Below are the changes in the subgroups:
*Production indexes for home electronics, home appliances, furniture, and carpeting declined over -0.5%.
*Miscellaneous Durable Goods output declined over -1%.
*Nondurable non-energy Consumer Goods output declined -0.5%. Losses occurred in all its major components: consumer chemical products, paper products, clothing, and foods and tobacco.
*The consumer energy goods index declined -1.1% in October, following a -0.1% decline[/color][/b][/color]
in September
*The business equipment index declined -0.1% in October.
*Transit equipment output rose +1.7%--due mainly to civilian aircraft production.
*The information processing equipment index declined -0.3%; the decrease was led by declines in the output of
electromedical equipment and communications equipment (broadcasting, wireless, and other).
*The industrial & other equipment index declined -0.7%--due to large drop in construction equipment production.
*Defense and space equipment output increased +0.4 percent in October. (Government can always find money to spend.)
*The construction supplies index declined -0.4% in October, its 4th consecutive monthly decline;
*The construction supplies index is only +0.1 percent above its year-earlier level.
*The business supplies index declined -0.8% in October.
*The materials production index declined -0.4% in October.
*The non-energy materials index for durable materials declined -0.1% in October.
*A gain in equipment parts was offset by a decline in consumer parts, which reflected lower output of motor vehicle
parts, and by a decrease in other durable materials.
*Output of nondurable materials declined -0.6%. A decrease in chemical materials outweighed a rise in paper materials.
*The energy materials index declined -0.7% in October.
*Manufacturing output decreased -0.4% in October.
*The factory operating rate declined -0.4 percentage points, down to 80.1% from September's 80.5%
*Durable Goods production declined -0.2% overall.
..Notable decreases occurred in wood products; nonmetallic mineral products; fabricated metal products;
machinery; electrical equipment, appliances, and components; motor vehicles and parts; and miscellaneous
products.
..Increases occurred in primary metals, computer and electronic products, and aerospace and
miscellaneous transportation equipment.
*Non-Durable Goods production declined -0.4% in October.
..Significant declines occurred in food, beverage, and tobacco products; apparel and leather; printing and support; and chemicals.
*These decreases more than offset increases in paper, petroleum, and coal products output.
*Logging and publishing industry output fell -1.5%.
*Utilities output decreased -1.6% in October.
*Natural gas output fell a whopping -7.7%
*Electrical Utilities output fell -0.5%
*Mining Output fell -0.6%
*Capacity Utilization for mining declined to -0.6% in October to 90.9%. This is -0.1% less than in October 2006.
The report can be summed up in 1 word:
RECESSION
Below are highlights of the the Federal Reserve's
Industrial Production report
1-month changes:
*Industrial production decreased -0.5% in October.
*Manufacturing output fell -0.4%[/b] in October
*Utilities output dropped -1.6%.
October-to-October changes:
*Industrial production in October was 1.8 percent above its year-earlier level.
*Capacity utilization for total industry declined to 81.7 percent, a rate equal to its year-earlier level
A decline in Capacity Utilization indicates declining demand for production, as well as production workers. It can be summarized as follows:
Capacity Utilization Decline =
Production Demand Decline =
Labor Demand Decline=
Employment Decline AND Wage Decline
more from the Fed report:
"The output of consumer goods dropped -0.7%[/color][/b] in October; the decreases were widespread. Among durable consumer goods, the production index for automotive products moved down 0.6 percent, its 3rd consecutive monthly decline...."
Below are the changes in the subgroups:
*Production indexes for home electronics, home appliances, furniture, and carpeting declined over -0.5%.
*Miscellaneous Durable Goods output declined over -1%.
*Nondurable non-energy Consumer Goods output declined -0.5%. Losses occurred in all its major components: consumer chemical products, paper products, clothing, and foods and tobacco.
*The consumer energy goods index declined -1.1% in October, following a -0.1% decline[/color][/b][/color]
in September
*The business equipment index declined -0.1% in October.
*Transit equipment output rose +1.7%--due mainly to civilian aircraft production.
*The information processing equipment index declined -0.3%; the decrease was led by declines in the output of
electromedical equipment and communications equipment (broadcasting, wireless, and other).
*The industrial & other equipment index declined -0.7%--due to large drop in construction equipment production.
*Defense and space equipment output increased +0.4 percent in October. (Government can always find money to spend.)
*The construction supplies index declined -0.4% in October, its 4th consecutive monthly decline;
*The construction supplies index is only +0.1 percent above its year-earlier level.
*The business supplies index declined -0.8% in October.
*The materials production index declined -0.4% in October.
*The non-energy materials index for durable materials declined -0.1% in October.
*A gain in equipment parts was offset by a decline in consumer parts, which reflected lower output of motor vehicle
parts, and by a decrease in other durable materials.
*Output of nondurable materials declined -0.6%. A decrease in chemical materials outweighed a rise in paper materials.
*The energy materials index declined -0.7% in October.
*Manufacturing output decreased -0.4% in October.
*The factory operating rate declined -0.4 percentage points, down to 80.1% from September's 80.5%
*Durable Goods production declined -0.2% overall.
..Notable decreases occurred in wood products; nonmetallic mineral products; fabricated metal products;
machinery; electrical equipment, appliances, and components; motor vehicles and parts; and miscellaneous
products.
..Increases occurred in primary metals, computer and electronic products, and aerospace and
miscellaneous transportation equipment.
*Non-Durable Goods production declined -0.4% in October.
..Significant declines occurred in food, beverage, and tobacco products; apparel and leather; printing and support; and chemicals.
*These decreases more than offset increases in paper, petroleum, and coal products output.
*Logging and publishing industry output fell -1.5%.
*Utilities output decreased -1.6% in October.
*Natural gas output fell a whopping -7.7%
*Electrical Utilities output fell -0.5%
*Mining Output fell -0.6%
*Capacity Utilization for mining declined to -0.6% in October to 90.9%. This is -0.1% less than in October 2006.
The report can be summed up in 1 word:
RECESSION