Industrial production across the G.17 was unchanged in January after falling 0.6% and 1.0% in November and December, respectively, the Federal Reserve Bank of Kansas City said in a publication.
SUMMARY
In January, manufacturing output moved up 1.0%, and mining output rose 2.0% following two months with substantial decreases for each sector, the Bank said. The output of utilities fell 9.9% in January, as a swing from unseasonably cool weather in December to unseasonably warm weather in January depressed the demand for heating.
At 103.0% of its 2017 average, total industrial production in January was 0.8% more than its year-earlier level, the publication said. Capacity utilization declined 0.1 percentage point in January to 78.3%, a rate that is 1.3 percentage points below its long-run (1972–2022) average.
MARKET GROUPS
Consumer energy products, commercial energy products and energy materials all recorded substantial decreases because of the drop in the output of utilities, the Bank said.
The output of most other market groups advanced. The indexes for consumer non-energy nondurables, business equipment, defense and space equipment and nondurable materials all rose more than 1%; the indexes for consumer durables, construction supplies, non-energy business supplies and durable materials increased from 0.5% to 1%.
INDUSTRY GROUPS
Manufacturing output rose 1.0% in January, the Bank said. Durable, nondurable and other manufacturing recorded advances of 0.8%, 1.1% and 2.2%, respectively.
Within durables, gains of at least 1% were recorded by nonmetallic mineral products, by machinery, by computer and electronic products, by electrical equipment, appliances, and components, and by aerospace and miscellaneous transportation equipment; wood products and furniture posted the only losses.
Gains of more than 1.5% were posted by chemicals and by food, beverage, and tobacco products, the two largest industry groups within nondurables, the report said. Declines in printing and support, in petroleum and coal products and in plastics and rubber products tempered the overall gain for the sector.
Mining output rose 2.0% in January, with gains in most of its components other than oil and gas well drilling, the Bank said. The output of mines was 8.6% above its reading of 12 months earlier. The output of utilities dropped 9.9% in January, with decreases for both electric and natural gas utilities.
Capacity utilization for manufacturing increased 0.6 percentage point in January to 77.7%, a rate that is 0.5 percentage point less than its long-run average, the publication said. The operating rate for mining rose 1.6 percentage points to 89.0%, while the operating rate for utilities fell 7.8 percentage points to 68.6%.
The rate for mining was 2.7 percentage points more than its long-run average. The rate for utilities was the lowest in the history of the index (since 1972).
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $159.00 to $161.05 per cwt, compared with the previous week’s range of $156.00 to $159.91. FOB dressed steers, and heifers went for $249.44 to $255.60 per cwt, versus $244.52 to $252.19.
The USDA choice cutout Friday was up $1.49 per cwt at $281.04 while select was up $3.25 at $265.89. The choice/select spread narrowed to $15.15 from $16.91 with 50 loads of fabricated product and 20 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.50 to $1.70 a bushel over the Mar corn contract. Bids in Kansas were steady at $0.75 over Mar, which settled at $6.77 3/4 a bushel, up $0.01 3/4.
No live cattle contracts were tendered for delivery on Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $182.63 per cwt, down $0.40. This compares with Friday’s Mar contract settlement of $186.52 per cwt, up $0.30.