The following is the unedited transcript of the news release from Federal Reserve Bank


Industrial production increased 0.1 percent in January for a second consecutive month. Output in the manufacturing sector was unchanged in January, as lower output of motor vehicles and parts offset a small net gain elsewhere. The output of utilities climbed 2.2 percent, while the output of mines moved down 1.8 percent. At 114.2 percent of its 2002 average, overall industrial production was 2.3 percent above its January 2007 level. The rate of capacity utilization in January was unchanged, at 81.5 percent, a rate 0.4 percentage point above its year-earlier level and 0.5 percentage point above its 1972-2007 average.

Market Groups

The production of consumer goods increased 0.3 percent in January: Consumer energy products advanced, consumer non-energy nondurables remained unchanged, and consumer durables fell. Both higher fuel output and an increase in residential energy sales contributed to the jump of 2.9 percent in the index for consumer energy goods. Among non-energy nondurables, small gains in the production of food and tobacco and of paper were offset by declines for chemicals and for clothing. Among consumer durables categories, the production of appliances, furniture, and carpeting dropped 2.1 percent, and the output of automotive products fell 1.2 percent; however, the output of home electronics and of miscellaneous consumer durables rose.

The output of business equipment rose 0.4 percent in January; increases in information processing equipment and in transit equipment outweighed a decrease in industrial and other equipment. The index for information processing equipment rose 1.6 percent as a result of further moderate gains in most of its components. The increase of 0.7 percent in transit equipment was concentrated in civilian aircraft; auto and truck assemblies both declined. Lower production indexes for machinery used in mining, in basic industry, and in farming contributed to the decrease of 0.4 percent in the index for industrial and other equipment.

The output of defense and space equipment increased 0.9 percent after having been unchanged in December. Gains were widespread among its components.

The output of construction supplies fell 1.1 percent in January after a rise of the same magnitude in December; production in January was 1.2 percent below its year-earlier level and about 4 percent below its peak in 2006. The output of business supplies increased 0.5 percent.

The production of non-energy materials edged down 0.1 percent in January, while the output of energy materials was unchanged. Among non-energy materials, the index for durable materials declined 0.2 percent. For the second consecutive month, a gain in equipment parts partly offset decreases in consumer parts and in other durable materials. In January, the advance in equipment parts was broadly based. Declines in indexes related to motor vehicle parts contributed significantly to the overall decrease for consumer parts, while the production of other durable materials was restrained by declines in metals, in plastics, in sawmills, and in stone, sand, and gravel mining. The output of nondurable materials was unchanged, as an increase in chemical materials was offset by large declines in textile materials and paper materials. The output of energy materials was unchanged; the output of utilities rose, but oil and gas extraction and related operations fell.

Industry Groups

Manufacturing production was unchanged in January after an increase of 0.2 percent in December. The factory operating rate decreased 0.1 percentage point in January, to 79.7 percent, a level 0.1 percentage point below its 1972-2007 average. The index for durable goods was unchanged. The indexes for computer and electronic products, for nonmetallic mineral products, and for aerospace and miscellaneous transportation equipment all posted sizable gains. However, output declined for wood products, primary metals, motor vehicles and parts, and furniture and related products. The production of nondurables edged up 0.1 percent. The output of petroleum and coal products advanced 2.6 percent, and the output of food, beverage, and tobacco products rose 0.4 percent. In contrast, the output index for textile and product mills fell 2.7 percent, and the output indexes for plastics and rubber products and for printing and support each fell about 1.5 percent. The output of non-NAICS industries (publishing and logging) edged up 0.1 percent.

The output of electric utilities increased 2.1 percent in January, and the output of natural gas utilities climbed 3.0 percent. The operating rate at utilities rose 1.8 percentage points, to 87.7 percent, a level 1.0 percentage point above its 1972-2007 average. Mining production fell 1.8 percent, with widespread decreases among its components. The capacity utilization rate for mining declined 1.8 percentage points, to 90.6 percent, a rate 3.1 percentage points above its long-run average.

Capacity utilization at industries grouped by stage of processing changed as follows: For the crude stage, utilization decreased nearly 1 percentage point, to 89.8 percent, a rate that is 3.2 percentage points above its 1972-2007 average. For the primary and semifinished stages, utilization increased 0.2 percentage point, to 81.9 percent. For the finished stage, utilization was unchanged at 78.3 percent.


Available at:

http://www.federalreserve.gov/releases/g17/current/default.htm