EmailEconomic
Last Update: 15-Jul-20 09:48 ET
Industrial Production
Highlights
- Total industrial production increased 5.4% m/m in June (Briefing.com consensus 4.6%) following an unrevised 1.4% increase in May.
- The capacity utilization rate improved to 68.6% (Briefing.com consensus 68.3%) from an upwardly revised 65.1% (from 64.8%) in May.
Key Factors
- Manufacturing output surged 7.2% after a 3.8% increase in May.
- The output of motor vehicles and parts surged 105.0% in June, but it is still nearly 25% below its February level.
- Mining output fell 2.9% on the heels of a 6.1% decline in May.
- The output of utilities increased 4.2% following a 3.5% decline in May.
- The level of total industrial production in June was 10.8% lower than the same period a year ago. The 68.6% capacity utilization rate is 11.2 percentage points below its long-run average.
Big Picture
- The key takeaway from the report was the stark disclosure that the index fell 42.6% at an annual rate for the second quarter as a whole, which was the worst downturn since the industrial retrenchment after World War II.
| Category | JUN | MAY | APR | MAR | FEB |
|---|---|---|---|---|---|
| Industrial Production | |||||
| Total Index | 5.4% | 1.4% | -12.7% | -4.4% | 0.1% |
| Manufacturing | 7.2% | 3.8% | -15.9% | -5.1% | 0.0% |
| Utilities | 4.2% | -3.5% | 1.9% | -3.1% | 3.6% |
| Mining | -2.9% | -6.1% | -6.8% | -1.9% | -1.5% |
| Capacity Utilization | |||||
| Total Industry | 68.6% | 65.1% | 64.2% | 73.5% | 76.9% |
| Manufacturing | 66.9% | 62.3% | 60.0% | 71.3% | 75.2% |
