Summary
- Rise in production follows upward revision to February gain.
- Factory output improves moderately; utilities production increases.
- Capacity utilization edges higher.
Total industrial production increased 0.4% during March, but was unchanged y/y. The gain came after rising 0.4% in February, revised from 0.1%, and falling 0.8% in January, revised from a 0.5% decline. The Action Economics Forecast Survey expected a 0.5% increase in production last month.
Manufacturing production rose 0.5% (0.8% y/y) after increasing 1.2% in February, revised from 0.8%. A 1.1% January decline was unrevised. Mining output fell 1.4% (-2.0% y/y) after a 3.0% February increase. Utilities production rose 2.0% (-3.1% y/y) after a minimally-revised 7.6% in February decline.
In the manufacturing sector, production of durable goods rose 0.3% (1.9% y/y) in March after a 1.3% February rise. Motor vehicle & parts production strengthened 3.1% last month (10.5% y/y) but machinery output weakened 0.4% (-3.1% y/y). Electrical equipment & appliance output eased 0.4% both m/m and y/y. Primary metals production declined 0.7% (-0.6% y/y) while computer & electronic product production improved 0.1% (6.9% y/y). In the nondurable goods sector, factory output rose 0.7% last month (0.1% y/y) after rising 1.1% in February. Chemical production strengthened 0.7% (1.3% y/y) and printing production improved 1.5% (-1.1% y/y). Paper output increased 0.6% (-0.1% y/y) and textile output fell 1.4% (-5.5% y/y). Food, beverage & tobacco production fell 0.5% (-2.1% y/y). Petroleum & coal product output rose 4.8% (5.2% y/y) but apparel production declined 1.7% (-16.4% y/y), off for the fifth straight month.
The major market groups posted mixed results in March. Consumer goods output rose 1.2% (-0.4% y/y) as a 1.0% rise (-1.8% y/y) in nondurable goods production accompanied a 1.9% increase (5.0% y/y) in durable goods output. Business equipment production improved 0.1% last month (1.7% y/y) while construction supplies output fell 1.0% (-0.5% y/y). Materials output held steady (-0.3% y/y) in March.
In special aggregates, output of selected high-tech industries rose 0.3% (14.1% y/y) following a 1.1% February decline. Manufacturing output excluding selected high-tech production rose 0.5% (0.6% y/y) after rising 1.3% in February. Manufacturing output excluding selected high-tech industries and motor vehicle production rose 0.3% (-0.2% y/y) in March after strengthening 1.1% in February.
Total capacity utilization was rose to 78.4% in March from 78.2% in February. A 78.6% utilization rate had been expected. Capacity utilization for manufacturing improved to 77.4% in March from 77.1% in February. The capacity utilization rate for mining fell to 91.0% from 92.3. The operating rate for utilities increased to 69.1% last month from 67.9% in February.
Industrial production and capacity data are located in Haver’s USECON database. Additional detail on production and capacity utilization can be found in the IP database. The expectations figures come from the AS1REPNA database.
Economic Uncertainty and the Evolution of Monetary Policymaking from Fed Vice Chair Philip N. Jefferson is available here.
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