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


Industrial production declined 0.7 percent in April after having risen 0.2 percent in March. Manufacturing output fell 0.8 percent in April. As was the case in March, factory output in April was held down by a large drop in the index for motor vehicles and parts; strikes and strike-related parts shortages resulted in suspended production at many facilities. Excluding motor vehicles and parts, manufacturing production fell back 0.4 percent after having increased 0.3 percent in March. In April, the output of utilities rose 0.3 percent, and the output at mines decreased 0.8 percent. At 111.2 percent of its 2002 average, overall industrial production was 0.2 percent above its year-earlier level. The rate of capacity utilization for total industry declined 0.7 percentage point, to 79.7 percent, a level 1.3 percentage points below its average for 1972-2007.

Market Groups


The production of consumer goods decreased 0.8 percent in April. The output of consumer durables dropped 4.1 percent, but the output of consumer nondurables was unchanged. Among durable consumer goods, the large decline principally reflected the strike-related curtailments for automotive products manufacturers; however, the output indexes for appliances, furniture, and carpeting and for miscellaneous goods also fell. Among consumer non-energy nondurables, the index for paper products dropped 1.9 percent, but the indexes for the other major categories were little changed. The output of consumer energy products gained 0.7 percent.

In April, the output of business equipment fell 1.1 percent. The index for transit equipment dropped 2.8 percent, primarily as a result of the strike activity in the motor vehicle industry. The output of industrial and other equipment also posted a significant decrease, as production was cut sharply for both farm and construction machinery. The index for information processing equipment rose 1.2 percent and stood 13.1 percent above its year-earlier level. The production of defense and space equipment moved up 1.6 percent. The output of construction supplies fell 1.5 percent and has declined in five of the past six months. The production of business supplies stepped down 0.5 percent.

The output of materials declined 0.7 percent in April, and durable, nondurable, and energy materials all posted losses. Within durables, the output of consumer parts fell 3.3 percent and stood nearly 12 percent below its year-earlier level; reductions in the output of motor vehicle parts have contributed in large measure to the weakness in this index. The production of equipment parts was unchanged after having risen 1.3 percent in March, and the output of other durable materials decreased 0.8 percent. Among nondurable materials, the production of both textile and paper materials fell substantially in April, and the output of chemical materials edged down. The production of energy materials declined 0.6 percent.

Industry Groups


Manufacturing output fell 0.8 percent in April; half of this loss was attributable to a drop of 8.2 percent in the production of motor vehicles and parts. The factory operating rate moved down 0.8 percentage point, to 77.5 percent. The production of durable goods fell 1.4 percent after having been unchanged in March. In addition to the motor vehicles and parts industry, the durable manufacturing industries that registered decreases in output of more than 1 percent in April included nonmetallic mineral products, fabricated metal products, and machinery. In contrast, the output of computer and electronic products moved up more than 1 percent for the third consecutive month. The index for nondurable manufacturing edged down 0.1 percent; sizable reductions occurred in the indexes for textile and product mills, printing and support, and plastics and rubber products. The output of petroleum and coal products rose. Increases in gasoline and aviation fuel contributed to the gain at refineries; output indexes for both of these products have advanced more than 5 percent from their year-earlier levels. The production of non-NAICS manufacturing (logging and publishing) fell 1.8 percent.

The output of utilities edged up 0.3 percent; its operating rate was little changed, at 85.9 percent, a level 0.9 percentage point below its 1972-2007 average. Mining production decreased 0.8 percent, with losses in all of its major components. The capacity utilization rate for mining fell 0.8 percentage point, to 90.6 percent, a rate 3.1 percentage points above its long-run average.

Capacity utilization at industries grouped by stage of process changed as follows: For the crude stage, utilization moved down 0.8 percentage point, to 89.2 percent, a rate 2.6 percentage points above its 1972-2007 average; for the primary and semifinished stages, utilization moved down 0.5 percentage point, to 79.6 percent, a rate 2.6 percentage points below its long-run average; and for the finished stage, utilization decreased 0.9 percentage point, to 76.2 percent, a rate 1.5 percentage points below its long-run average.


Available at:

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