Industrial Production and Capacity Utilization
US Manufacturing production capacity and utilization are improving and are now at the level of pre-recession levels of factory output.
Industrial production increased 1.3 percent in November after edging up in October; output is now reported to have risen at a faster pace over the period from June through October than previously published.
In November, manufacturing output increased 1.1 percent, with widespread gains among industries.
The rise in factory output was well above its average monthly pace of 0.3 percent over the previous five months and was its largest gain since February. In November, the output of utilities jumped 5.1 percent, as weather that was colder than usual for the month boosted demand for heating. The index for mining decreased 0.1 percent. At 106.7 percent of its 2007 average, total industrial production in November was 5.2 percent above its year-earlier level. Capacity utilization for the industrial sector increased 0.8 percentage point in November to 80.1 percent, a rate equal to its long-run (1972–2013) average
Robert Oak has an analysis: (bold is mine) {he also made some nice charts}
Industrial production is on fire with a 1.3% November gain. Even better, the Federal Reserve Industrial Production & Capacity Utilization report shows upward revisions all the way back to June 2014. October was revised from a -1.0% decline to 0.1% growth. This month gains were across the board,, another good sign for the economy. Manufacturing alone grew by 1.1% and utilities jumped up 5.1% from October. Mining, which includes oil, decreased by just -0.1%. The sudden jump up in utilities is due to colder weather if one recalls the great freeze taking over the country in November. The G.17 industrial production statistical release is also known as output for factories and mines. This is the largest industrial production monthly gain since October 2005.
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