Wednesday, July 15, 2015

Industrial Production and Capacity Utilization: June 2015

Today, the Federal Reserve released their monthly read of industrial production and capacity utilization showing an increase in June with total industrial production increasing 0.33% since May and climbing 1.54% above the level seen in June 2014.

Capacity utilization also improved slightly rising 0.19% from May but falling 1.05% below the level seen in June 2014 to stand at 78.398%.

It's important to note that the last few months have seen a notable weakening trend in these measures with capacity utilization showing the first year-on-year declines since early 2010 at the start of the recovery.

It will be interesting to watch these series in the coming months to see if this is a momentary weakening or if we are possibly entering a new cyclical downturn.