November 16, 2017 – The Industrial Production Index (IPI) measures the manufacturing, electric, mining, and gas industries output on a monthly basis.
Industrial production increased 0.9% in October, above the consensus of 0.5%. Manufacturing jumped 1.3%, well above expectations of 0.3% gains while the capacity utilization rate came in at 77.0%, above estimates of 76.3%. Motor vehicle production was a major boost to industrial production with a 1.0% increase along with a 2.0% increase in utilities. Mining reported a decline of 1.3% for October.
The industrial production index provides trends for the manufacturing sector but for economic growth as well. Although mining lagged, motor vehicle production and utilities helped provide a significant boost to industrial production. The capacity utilization rate at a moderate 77% indicates that price increases are not coming soon.