Industrial production rose 0.3 percent in November after having climbed 0.6 percent in October; the production estimates for both September and October were revised down. At 117.6 percent of its 1997 average, the November index was 4.2 percent above its year-ago level. Manufacturing output increased 0.3 percent in November, and production in both durables and nondurables advanced moderately. The index for mining output rose 2.1 percent, and the index for utilities fell 1.4 percent. The rate of capacity utilization for total industry edged up 0.1 percentage point, to 77.6 percent, a level 3.5 percentage points below its 1972-2003 average.
Market Groups
The output of consumer goods was unchanged in November. Among durable consumer goods, lower output of home electronics and automotive products offset gains in appliances, furniture, and carpeting, as well as in miscellaneous goods. The output of consumer non-energy nondurables increased 0.2 percent in November, the third consecutive month of modest gains. An increase in chemical products more than offset lower production of paper products. The production of consumer energy products fell 0.3 percent.The index for business equipment increased 0.4 percent and now stands 10 percent above its year-ago level. The production indexes for information processing equipment, industrial and other equipment, and transit equipment all moved up. The production of defense and space equipment rose for the fifth consecutive month. The output of construction supplies increased 0.4 percent, and the output of business supplies edged up 0.1 percent.
The production of industrial materials gained 0.3 percent. The output of non-energy materials moved up, as decreases in textiles and consumer parts were more than offset by higher production of equipment parts, paper materials, industrial chemicals, and other durable materials. The increase in the equipment parts index principally reflected gains in semiconductors and computer parts; the index stood at 13.9 percent above its year-ago level. The output of energy materials rose 0.4 percent.
Industry Groups
The rise of 0.3 percent in manufacturing output in November reflected a 0.4 percent increase in the production of durables, a 0.3 percent increase in the production of nondurables, and a 0.1 percent decrease in non-NAICS manufacturing (logging and publishing). Among durables, sizable gains were posted by the indexes for nonmetallic mineral products; aerospace and miscellaneous transportation equipment; and electrical equipment, appliances, and components, while the indexes for wood products and for motor vehicles and parts declined. Among nondurables, petroleum refining and printing and support registered substantial output gains, and chemical production moved up moderately. In contrast, the output of textile mills and paper fell. The overall factory operating rate in November edged up 0.1 percentage point, to 76.7 percent, a level 2.3 percentage points above its year-ago level but 3.3 percentage points below its 1972-2003 average.The decline of 1.4 percent in utilities output in November was driven entirely by lower production at electric utilities. Among the mining categories, crude oil extraction rose for the first time since July, while natural gas extraction edged up further.
Capacity utilization for industries in the crude stage of processing increased 1.0 percentage point, to 84.6 percent. The utilization rate for industries in the primary and semifinished stages dipped 0.2 percentage point, to 78.9 percent, and the utilization rate for finished goods producers increased 0.2 percentage point, to 75.0 percent.
In summary, nonfarm payroll employment increased by 112,000 in November and has risen by 2.3 million since August 2003. The unemployment rate was essentially unchanged over the month, at 5.4 percent.
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