Industrial production increased 0.9% in December after moving up 0.2% in November. In December, gains in the output of aircraft and parts contributed 0.2 percentage points to total IP growth following the resolution of a work stoppage at a major aircraft manufacturer. Manufacturing output rose 0.6% after gaining 0.4% in November. The indexes for mining and utilities climbed 1.8% and 2.1%, respectively, in December. At 103.2% of its 2017 average, total IP in December was 0.5% above its year-earlier level. Capacity utilization stepped up to 77.6%, a rate that is 2.1% points below its long-run (1972–2023) average.
The majority of market groups posted gains in December. The output of consumer goods increased 0.5% as a rise in nondurables production outweighed a broad-based decline in durables. Output of nondurable consumer goods rose 0.7%, supported by a 1.9% gain in the index for energy. The index for business equipment grew 1.4%, reflecting a strong increase in the production of civilian aircraft. Construction supplies and business supplies both posted gains of 0.9% in December. The index for materials rose 1.2%, with growth in every category of this index except consumer parts, for which output fell 1.4%. Manufacturing output moved up 0.6% in December and was equal to its year-earlier level.
In December, the durable manufacturing index stepped up 0.4% with large gains in the output of aerospace and miscellaneous transportation equipment (6.3%) and primary metals (1.7%). The nondurable manufacturing index increased 0.7%, with increases in all its subcomponents. Similarly, the index for other manufacturing (publishing and logging) rose 0.8%.
Mining output rose 1.8% in December after moving down 0.5% in November. The index for utilities increased 2.1% in December, supported by a rise of 6.2% in the index for natural gas.
Capacity utilization for manufacturing stepped up 0.4 percentage points in December to 76.6%, a rate that is 1.7 percentage points below its long-run (1972–2023) average. The operating rate for mining increased 1.6 percentage points to 90.8%, and the operating rate for utilities moved up 1.3 percentage points to 71.1%. The rate for mining was 4.3 percentage points above its long-run average, while the rate for utilities remained substantially below its long-run average.
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