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Industrial Production Falls in November - Real Time Insight

Total Industrial Production fell in November by 0.2%. but was up 3.7% year over year. That is well below expectations for a 0.2% increase. October was unrevised at up 0.7% but September was revised up to unchanged from a 0.1% decline. The cause was factory output, which fell 0.4% after being up 0.5% in October (unrevised) and 0.4% in September (revised up from 0.3%. The total number is often distorted by Utilities, which can move with the weather as much as industrial output. Utility output was up 0.2% after a string of declines and is down 0.7% The third group, Mining has been doing vey well, up 6.7% year over year, but it slowed to being up just 0.1% on the month after jumping 2.1% in October.

The other part of the report is Capacity Utilization. Total utilization fell to 77.8% from 78.0$ in October, but only after it was revised up from 77.8%, so take your pick, it was either flat or up. It is up from 75.8% a year ago, and a June 2009 low of just 67.3%. The long term average is 80.4%. In other lots of progress, but we still have a ways to go, and the progress seemed to stall this month. Factor utilization fell to 75.3% from 75.6% in October, but that was revised up from 74.4%. September was also revised up by 0.4% to 75.6%. It is up from 73.1% a year ago and a June 2009 low of 64.4%.

Mine utilization was unchanged at a red hot level of 92.9%, up from 88.9% a year ago and a Recession low of 79.0%. Its long term average is 87.4%. Utility Utilization ticked up to 78.2% from 78.1% but that is actually still below the lowest point of 2009, which was 79.2% and is well below the long term average of 86.6%. In fact last month was an all time record low.

All in a all a disappointing report, but the longer term upward trend still seems intact.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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