Industrial production declined 0.1% in October following a gain of 0.7% in September. In October, manufacturing production rose 0.3%. The production of utilities dropped by 1.1%, following a 4.5% increase in September and, after six consecutive monthly gains, the output of mines fell 1.6%. At 100% of its 2007 average, October’s total industrial production was 3.2% above its year-earlier level. The total industry capacity utilization rate of 78.1% in October was 2.1 percentage points below the long-run average from 1972 through 2012.
The Purchasing Managers Index (PMI) another indicator of manufacturing strength, registered 57.3% in November, a 0.9 percentage point increase from October’s reading. Any reading above 50.0% indicates that the manufacturing economy is generally expanding. Fifteen of 18 manufacturing industries reported growth in October, including electrical equipment, appliances & components; computer & electronic products; fabricated metal products; petroleum & coal products; plastics & rubber products; transportation equipment; miscellaneous manufacturing; primary metals and chemical products. Three industries reported a contraction, including machinery.
The Consumer Confidence Index decreased to 70.4 in November from 72.4 in October as Americans expressed pessimism regarding the six-month economic outlook, particularly as it relates to employment and business conditions.
New orders for manufactured durable goods registered $230.3 billion in October, representing a 2.0% decrease from September. The decrease was led by transportation equipment, which declined by $4.6 billion in October. October’s shipments of manufactured durable goods increased by 0.2% September’s reading to $233.2 billion, led by a $0.7 billion increase in transportation equipment.
Following annual growth of 2.5% in the second quarter of 2013, estimates suggest that gross domestic product (GDP) grew at an annual rate of 2.8% in the third quarter of 2013 when compared to the prior quarter. Driving the growth were increased personal spending, exports, private inventory investments, as well as residential and nonresidential fixed investment.
The chemical and allied products producer price index decreased to 276.9 in October from September’s reading of 278.1.