Industrial Production Is Up; Inventories Are Down

Jan. 13, 2005
By John S. McClenahen U.S. industrial production increased 0.2% in May -- and has risen almost 2% since its most recent low in December 2001, says the Federal Reserve. Its index now stands at 139.3 (1992 = 100). May's increase, however, was just half ...
ByJohn S. McClenahen U.S. industrial production increased 0.2% in May -- and has risen almost 2% since its most recent low in December 2001, says the Federal Reserve. Its index now stands at 139.3 (1992 = 100). May's increase, however, was just half the 0.4% gain that most economists expected, suggesting that the recovery from recession indeed remains modest. Manufacturing, which along with mining and utilities makes up the index, also rose 0.2% in May. The largest gains in manufacturing were in electrical machinery, and industrial machinery and equipment, categories that include computers, office equipment, semiconductors and electronic components. The operating rate of U.S. factories increased 0.1% in May to 73.9%. Meanwhile, the U.S. Commerce Department reports that manufacturers' inventories, except for semiconductors, at the end of April totaled $1.114 trillion, down 0.2% from their March 2002 level -- exactly the decline that most economists had predicted. "The somewhat lackluster advance in industrial production and continued drawdown in inventories indicates that business confidence is holding back investment and restricting the strength of the recovery," says Thomas J. Duesterberg, president and CEO of the Manufacturers Alliance/MAPI, Arlington, Va.

Popular Sponsored Recommendations

Secure end-to-end traceability and digitalization. Ensuring security with a specific data model.

July 11, 2023
A secure end-to-end traceability answers key questions. Is the device genuine or counterfeit? Are the designs intact and untampered? How to track origins and destinations? Explore...

7 Crucial Steps to Improve Your OT Security

Oct. 23, 2023
Enhance OT security in manufacturing and production. Uncover the crucial steps to safeguard your operational technology. Protect against evolving threats and bridge the IT-OT ...

3D Printing a More Efficient Factory Floor

Nov. 16, 2023
Today’s additive manufacturing platforms make it simple to print a wide range of high-performing industrial parts as soon as possible and right where you need them — unlocking...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!