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Industrial Production fell 1.1% in August, more than the 0.3% drop expected and following a 0.1% uptick in July. It was the biggest drop since Sept-05. IP was down 1.5% from Aug-07.

Capacity utilization fell to 78.7%, the lowest since Oct-04, after a 79.7% reading in July. Capacity use was up 1.7% from Aug-07.

The decline in Industrial Production came from big drop-offs in consumer goods (-2%) month over month and 3% year over year. Construction was also off (-1%) and materials were down 0.9%. Manufacturing output fell 1% on the month after a downwardly revised 0.1% increase in July. Mining output was down 0.4% and Utilities tanked 3.2% after a 1.6% drop the previous month.

The pullback in Capacity Utilization came from declines in Manufacturing and Utilities capacity use.

• August Industrial Production is expected to fall 0.3% following a 0.2% increase in July
• August Capacity Utilization is expected at 79.6% from 79.9% in July

Declines in auto-production are expected to have a significant impact on overall industrial production in August, with vehicle production likely to pull back from its 3.6% increase in July. July’s gains were largely due to the end of the Amercan Axel strike which had cut production. Vehicle production could fall as much as 11% in August as the demand nosedives.

August Manufacturing Production is expected to fall marginally following a 0.4% increase in July. However, the 0.9% decline in the Manufacturing Hours Worked data in the August employment report pose downside risks to the estimate.

August Utilities Production is expected to post further declines following a 1.9% decline in July. Mining Production in August is expected to rise for a fourth consecutive month after the August Employment report showed a 3% increase in aggregate mining hours worked.

Related Data:

• August ISM Production Index fell to 52.1 from 51.9
• August Chicago PMI Production Index grew to 63.4 from 49.2

• August Industrial Production is expected to fall 0.3% following a 0.2% increase in July
• August Capacity Utilization is expected at 79.6% from 79.9% in July

Declines in auto-production are expected to have a significant impact on overall industrial production in August, with vehicle production likely to pull back from its 3.6% increase in July. July’s gains were largely due to the end of the Amercan Axel strike which had cut production. Vehicle production could fall as much as 11% in August as the demand nosedives.

August Manufacturing Production is expected to fall marginally following a 0.4% increase in July. However, the 0.9% decline in the Manufacturing Hours Worked data in the August employment report pose downside risks to the estimate.

August Utilities Production is expected to post further declines following a 1.9% decline in July. Mining Production in August is expected to rise for a fourth consecutive month after the August Employment report showed a 3% increase in aggregate mining hours worked.

Related Data:

• August ISM Production Index fell to 52.1 from 51.9
• August Chicago PMI Production Index grew to 63.4 from 49.2

Industrial production rose 0.2% in July, beating analysts’ expectations of an unchanged reading. That followed a downwardly revised 0.4% rise in June.

Consumer goods production was up 0.3% on the back of 1% growth in durable goods output. Automotive products was up 2.5%.

Business equipment output edged up 0.8% in July, while construction supplies rose 0.3% but were down 5.3% on a y-o-y basis.

In the manufacturing sector, overall output was up 0.4%, with primary metals output up 0.8%. Motor vehicles and parts production was 3.6% higher. Petroleum and coal products output rose 1.9%.

Utilities output fell 1.9% after a 2.1% increase in June. Mining output was up 0.9%, matching the prior month’s gain.

On a y-o-y basis, industrial production is down 0.1% from Jul-07.

Meanwhile, capacity utilization rose to 79.9% from June’s downwardly revised 79.8% (previously reported as 79.9%. Crude capacity utilization rose up to 90.1% from 89.7% in June, while mining capacity use also rose. Utility capacity use fell to 84.4% from 86.2% prior.

July Industrial Production is expected to be unchanged after a 0.5% increase in June and a 0.2% decline in May. Capacity Utilization in July is expected to narrow marginally to 79.8%.

Mining production should provide the largest boost to July IP as the mining hours-worked component in the July employment report revealed a 2% increase. Mining production grew 1.1% in June following a 0.3% increase in May.

Improved auto production is also expected to provide some marginal support for July IP. Vehicle production grew 5.4% in June following a 0.6% increase in May and a 6.7% decrease in April.

Weakness in manufacturing is expected to drag on July IP as the July employment report showed continued declines in the manufacturing hours-worked component. Utilities production in July is expected to pull back from its 2.1% surge in June.

The July ISM Production Index improved to 52.9 from 51.5, which suggests a muted month in the manufacturing sector.

July Industrial Production is expected to be unchanged after a 0.5% increase in June and a 0.2% decline in May. Capacity Utilization in July is expected to narrow marginally to 79.8%.

Mining production should provide the largest boost to July IP as the mining hours-worked component in the July employment report revealed a 2% increase. Mining production grew 1.1% in June following a 0.3% increase in May.

Improved auto production is also expected to provide some marginal support for July IP. Vehicle production grew 5.4% in June following a 0.6% increase in May and a 6.7% decrease in April.

Weakness in manufacturing is expected to drag on July IP as the July employment report showrd continued declines in the manufacturing hours-worked component. Utilities production in July is expected to pull back from its 2.1% surge in June.

The July ISM Production Index improved to 52.9 from 51.5, which suggests a muted month in the manufacturing sector.

Industrial production rose 0.5% in June, beating analysts’ expectations and reversing 2 months of declines. The June figured improved from an unrevised 0.2% drop in May.

Consumer goods production was up 0.7% on the back of 2.6% growth in durable goods output. Automotive products surged 6.2%, reflecting the ramp-up of production after the American Axle strike was settled in late May.

Business equipment output edged up 0.2% in June, while construction supplies fell 0.9%.

In the manufacturing sector, overall output was up 0.2%, with primary metals output up 2.9%. Motor vehicles and parts production was 5.4% higher. Petroleum and coal products output was up 0.4%.

Utilities output rose 2.1%, boosted by warmer temperatures in June, while mining output was up 1.1%.

On a y-o-y basis, industrial production was up 0.3% vs. June-07.

Meanwhile, capacity utilization rose to 79.9% from May’s upwardly revised 79.6% (previously reported as 79.4%, which was the lowest percentage since 2004). Crude capacity utilization edged up to 89.7% from 89.6% in May, while mining and utilities capacity use also posted gains.

June Industrial Production is expected to increase 0.1% following a 0.2% decline in May. Capacity Utilization is expected to be unchanged at 79.4%.

There should be a 9% jump in auto production due to the American Axle strike ending on May 22.

Utilities should see a 2% improvement after the May data was hurt by cooler temperatures.

Manufacturing aggregate hours fell 0.5% in the June Employment report, but mining hours-worked increased 1.5%.

Also of interest, the May ISM Manufacturing Production component increased to 51.5 from 51.2.

June Industrial Production is expected to increase 0.1% following a 0.2% decline in May. Capacity Utilization is expected to be unchanged at 79.4%.

There should be a 9% jump in auto production due to the American Axle strike ending on May 22.

Utilities should see a 2% improvement after the May data was hurt by cooler temperatures.

Manufacturing aggregate hours fell 0.5% in the June Employment report, but mining hours-worked increased 1.5%.

Also of interest, the May ISM Manufacturing Production component increased to 51.5 from 51.2.

May industrial production fell 0.2% in May, below analysts’ expectations of a 0.1% increase. That followed an unrevised 0.7% decline in April. It was the first time there were 2 consecutive monthly declines in industrial production since late 2006.

Consumer goods production declined 0.2% despite the first increase in auto production this year. Home electronic production was also up and helped to offset declines in appliances and furniture, clothing and paper products. Production of business equipment was unchanged overall as a small increase in information equipment helped offset weakness in defense and transit equipment.

On a y-o-y basis, industrial production was down 0.1% from last May – the annual decline since Jun-02.

The index of manufacturing output was unchanged in May following a 0.9% decline in April but the utilities index fell 1.8%, pulling down the overall IP number. Mining showed a small 0.1% gain.

Capacity utilization was 79.4% in May, its lowest point since late 2004. Crude capacity utilization was up 1 percentage point to 89% but capacity utilization in the finished goods industries was only 75.9%.