Global| Apr 17 2018U.S. Industrial Production Strengthens; Factory Output Ticks Higher
by:Tom Moeller
|in:Economy in Brief
Summary
The Federal Reserve reported that industrial production increased 0.5% (4.3% y/y) during March following a 1.0% February rise, revised from 1.1%. A 0.4% rise had been expected in the Action Economics Forecast Survey. Factory sector [...]
The Federal Reserve reported that industrial production increased 0.5% (4.3% y/y) during March following a 1.0% February rise, revised from 1.1%. A 0.4% rise had been expected in the Action Economics Forecast Survey. Factory sector production improved 0.1% (3.0% y/y) after a 1.5% jump. Utility output surged 3.0% (5.4% y/y) and contrasted with February's 5.0% decline. Mining production strengthened 1.0% (10.8% y/y) following a 2.9% increase.
Strength in factory sector output reflected a 0.5% increase (4.4% y/y) in the production of business equipment which followed a 0.6% gain. Transit equipment production rose 1.3% (5.5% y/y) following a 2.0% increase, and information processing & related product output gained 0.7% (4.5% y/y) and repeated the prior month's rise.
Total consumer goods production also increased 0.5% (3.6% y/y) following two months of lesser increase. Durable consumer goods production rose 0.9% (4.5% y/y) after a 2.9% increase. Automotive product output jumped 2.7% (7.3% y/y) following a 3.6% gain. Computer, video & related production gained a steady 2.6% (11.4% y/y). Appliance, furniture & carpeting production declined 2.8% (-0.5% y/y) following a 1.9% rise. Nondurable consumer goods production increased 0.4% (3.3% y/y) following a 0.5% decline. Energy product output rebounded 3.9% (5.2% y/y) after a 7.0% decline. Apparel production fell 0.5% (-1.7% y/y) after three months of strong increase. Paper product output rose 0.5% (-3.5% y/y) after a 1.4% increase. Chemical product production rose 0.4% (4.4% y/y) after a 0.4% rise.
Construction supplies output decreased 0.3% (+3.4%y/y) after a 2.9% strengthening.
Production of materials improved 0.6% (5.4% y/y) after a 1.5% increase. Energy product materials output surged 1.2% (9.5% y/y) after a 1.0% increase. Durable goods materials output ticked 0.1% higher (3.5% y/y) and nondurable goods materials rose 0.2% (2.2% y/y) following a 1.5% rise.
In the special aggregate groupings, production in selected high-technology industries rose 1.2% (8.9% y/y) following a 0.5% gain. Nonenergy production excluding high-tech eased 0.1% (+2.8% y/y) following a 1.8% increase. Factory sector production excluding both high-tech and autos slipped 0.2% (+2.3% y/y) after a 1.3% jump.
Capacity utilization increased to 78.0%, the highest level since March 2015. Factory sector capacity utilization slipped to 75.9%.
Industrial production and capacity data are included in Haver's USECON database, with additional detail in the IP database. The expectations figure is in the AS1REPNA database.
How Much Consumption Responds to Government Stimulus from the Federal Reserve Bank of San Francisco is available here.
| Industrial Production (SA, % Change) | Mar | Feb | Jan | Mar Y/Y | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|
| Total Output | 0.5 | 1.0 | -0.2 | 4.3 | 1.6 | -2.0 | -1.0 |
| Manufacturing | 0.1 | 1.5 | -0.4 | 3.0 | 1.2 | -0.8 | 0.1 |
| Consumer Goods | 0.5 | 0.2 | 0.3 | 3.6 | 0.0 | 0.7 | 1.5 |
| Business Equipment | 0.5 | 0.6 | 0.1 | 4.4 | 3.2 | -5.3 | -2.0 |
| Construction Supplies | -0.3 | 2.9 | -1.7 | 3.4 | 2.5 | 0.9 | 0.6 |
| Materials | 0.6 | 1.5 | -0.4 | 5.4 | 2.0 | -3.0 | -1.5 |
| Utilities | 3.0 | -5.0 | 2.1 | 5.4 | -1.3 | -0.4 | -0.8 |
| Mining | 1.0 | 2.9 | -0.9 | 10.8 | 6.4 | -9.7 | -3.4 |
| Capacity Utilization (%) | 78.0 | 77.7 | 77.1 | 75.5 | 78.1 | 75.4 | 77.3 |
| Manufacturing | 75.9 | 76.0 | 74.9 | 74.3 | 74.8 | 74.6 | 75.8 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
More Economy in Brief
