Hurricane Beryl sparks slowdown in industrial production

Industrial production fell 0.6 percent in July amid shutdowns in petrochemical and related sectors due to Hurricane Beryl, according to the Federal Reserve. The decrease came after a 0.3 percent increase in June. .The earliest Category 5 hurricane on record, Beryl impacted the Gulf Coast of the United States in late June and early July. The storm caused severe flooding in Texas, and killed at least 36 in the Houston region. The storm also sparked a tornado outbreak in Texas, Louisiana, Arkansas, New York, Kentucky and Indiana..Total industrial production in July, at 102.9 percent of its 2017 average, was 0.2 percent under its year-earlier mark. Capacity utilization fell to 77.8 percent in July, which is 1.9 percentage points under its long-term average..Manufacturing output fell 0.3 percent in July as the index for motor vehicles and parts dropped nearly 8 percent. Manufacturing not including motor vehicles and parts increased 0.3 percent. .The index for durable manufacturing fell 0.9 percent amid the drop in motor vehicles and parts, while the index for nondurable manufacturing increased 0.4 percent amid a 1.7 percent rise in petroleum and coal products and 1.3 percent in paper. The index for publishing and logging manufacturing fell 1.6 percent. Manufacturing capacity utilization dropped to 77.2 percent, which is 1.1 percentage points under its long-term average. ."Most major market groups posted losses in July," according to the report. "The index for consumer goods declined 1 percent, largely because of a 7 percent drop in the index for automotive products. The index for materials fell 0.7 percent, recording losses in both its energy and its non-energy components." .The utilities index dropped 3.7 percent in July, led by a 4.3 percent decline in electric utilities. Defense and space equipment increased 0.5 percent last month, while the index for business equipment was essentially unchanged. A 4.6 percent fall in the index for transit was mainly offset by increases in the output of information processing equipment and of industrial and other equipment. .The operating rate for mining was unchanged at 88.8 percent, 2.3 percentage points higher than its long-term average. The utilities operating rate fell to 71 percent, which is under its long-term average. ."Mining output was flat in July, as gains in crude oil extraction were offset by declines elsewhere," according to the report. "In particular, temporary facility closures due to Hurricane Beryl reduced the output of natural gas liquid extraction."