EmailEconomic
Last Update: 15-May-20 09:50 ET
Industrial Production
Highlights
- Industrial production declined 11.2% m/m in April (Briefing.com consensus -12.1%), which was the largest monthly drop in the 101-year history of the index.
- The capacity utilization rate fell from 73.2% to 64.9% (Briefing.com consensus 64.0%), which is 14.9 percentage points below its long-run average and a record-low in a series that dates back to 1967.
Key Factors
- Manufacturing output declined 13.7% -- the biggest drop on record. The index for durable manufacturing dropped 19.3%, with the shutdown of motor vehicle assembly plants having a huge impact there.
- The seasonally adjusted annual rate of motor vehicle assemblies was just 0.18 million versus 7.18 million in March and 11.37 million in February.
- Mining output declined 6.1%.
- Utilities output declined 0.9%.
Big Picture
- The key takeaway from the report is that it is a reflection of how industrial production cratered amid shutdown orders designed to contain the spread of COVID-19. On a yr/yr basis, industrial production was down 15.0%.
| Category | APR | MAR | FEB | JAN | DEC |
|---|---|---|---|---|---|
| Industrial Production | |||||
| Total Index | -11.2% | 4.5% | 0.1% | -0.5% | -0.4% |
| Manufacturing | -13.7% | -5.5% | 0.0% | -0.1% | 0.2% |
| Utilities | -0.9% | -1.9% | 3.6% | -4.7% | -5.7% |
| Mining | -6.1% | -1.1% | -1.4% | 0.8% | 0.9% |
| Capacity Utilization | |||||
| Total Industry | 64.9% | 73.2% | 76.7% | 76.7% | 77.2% |
| Manufacturing | 61.1% | 70.8% | 75.0% | 75.1% | 75.2% |
