The Fed said that total industrial production—including mining, manufacturing, utilities output—fell 0.2 percent.
Utilities output fell 2.3 percent in August, driven by a 2.9 percent decline in electricity output. This may be an indication of demand destruction as prices for electricity jumped another 1.5 percent in August, bringing the year-over-year increase to 15.8 percent. That may be enough to convince some households and businesses to moderate their air-conditioning usage.
Excluding motor vehicles and parts, manufacturing production rose by 0.2 percent. This followed a 0.4 percent increase in July. But there were significant declines in May and June. These all add up to a 0.1 percent decline in output since April, Bank of America’s economists said in a client note Thursday.
Construction supplies production fell 0.6 percent, reflecting weakness in housing. Similarly, the output of furniture and related products fell 2.0 percent.
Build more powerplants now, Cali needs at least 3-5 new ones.