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15 February 2018
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Industrial production (The Total Investment & Insurance Solutions)
U.S. factory output was unchanged in January for the second straight
month after three months of healthy gains. The Total Investment & Insurance Solutions
The Federal Reserve said Thursday that
production fell in wood products, aircraft and a category including concrete
and glass. Yet factories also cranked out more cars and computers. The Total Investment & Insurance
Solutions
Manufacturers posted a solid year in 2017,
expanding production and adding nearly 200,000 jobs. A cheaper dollar and
healthy economies overseas boosted exports, while stepped up consumer spending
in the U.S. lifted domestic sales. The past two months' readings suggest,
however, that factory production has slowed in the new year. The Total Investment & Insurance
Solutions
Overall industrial production, which includes
mines and utilities, slipped 0.1 percent. Mining production fell 1 percent,
while utility output climbed 0.6 percent.
Other recent data point to healthy
manufacturing growth, a sign production may turn up in the coming months. A
survey of purchasing managers found that factory activity expanded rapidly last
month, though at a slightly slower pace than in December. New orders and
production rose, but also more slowly than in December. The Total Investment & Insurance
Solutions
And a separate government report showed that
orders for long-lasting manufactured goods, such as autos and appliances,
jumped in December.
The Fed's report also sheds light on whether
manufacturers are running at or above their normal capacity. When that happens,
they may feel compelled to raise prices to cover the cost of overtime work or
other extraordinary expenses. That can feed higher inflation. The Total Investment & Insurance
Solutions
For now, there is little sign that this is
happening: Manufacturing plants are running at 76.2 percent of capacity, the
Fed said, the same as last month but up from 75.4 percent a year ago. That is
about 2 percentage points below its long-run average. The Total Investment & Insurance
Solutions
Once manufacturers run up against capacity
limits, they may also invest more to expand their facilities and equipment,
which can spur greater economic growth.The
Total Investment & Insurance Solutions
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