EmailEconomic
Last Update: 16-Apr-13 09:34 ET
Industrial Production
Highlights
- Industrial production increased 0.4% in March following an upwardly revised 1.1% gain (from 0.7%) in February. The Briefing.com consensus expected production levels to increase 0.3%.
- Capacity utilization rates increased from 78.3% in February to 78.5% in March. Manufacturing utilization rates declined to 76.4% from 76.6%.
Key Factors
- The entire gain in production was due to a 5.3% increase in utilities usage. Colder-than-normal temperatures throughout March drove up heating demand.
- Manufacturing production fell 0.1% in March after increasing an upwardly revised 0.9% (from 0.6%) in February.
- The drop in manufacturing output was surprising given that the regional manufacturing surveys showed continued expansion in March, albeit at a slower pace.
- Motor vehicles and parts production was a positive highlight in March, increasing 2.9%.
- The number of assemblies increased to 11.05 mln SAAR from 10.68 mln SAAR in February. That was the most since June 2007. Auto assemblies increased from 4.28 mln SAAR in February to 4.60 mln SAAR in March, while truck assemblies increased from 6.39 mln SAAR to 6.45 mln SAAR.
- Excluding motor vehicles and parts production, manufacturing production decreased 0.4% in March.
- Production from mines fell 0.2% after increasing 0.9% in February.
Big Picture
- A recent turn-around in the regional manufacturing production surveys suggest manufacturing output should follow an upward track.
| Category | MAR | FEB | JAN | DEC | NOV |
|---|---|---|---|---|---|
| Industrial Production | |||||
| Total Index | 0.4% | 1.1% | -0.1% | 0.1% | 1.2% |
| Manufacturing | -0.1% | 0.9% | -0.3% | 0.8% | 1.4% |
| Utilities | 5.3% | 2.5% | 2.6% | -5.4% | 0.7% |
| Mining | -0.2% | 0.9% | -0.9% | 0.0% | 0.8% |
| Capacity Utilization | |||||
| Total Industry | 78.5% | 78.3% | 77.6% | 77.7% | 77.8% |
| Manufacturing | 76.4% | 76.6% | 76.0% | 76.3% | 75.8% |
