March industrial production declines 0.4%
Industrial production rose 0.4% in March but declined at an annual rate of 1.8% in the first quarter, the Fed reported.
Manufacturing output increased 0.5% in March, boosted in part by a gain of 3.1% in motor vehicles and parts; factory output excluding motor vehicles and parts moved up 0.3%. The index for mining fell 1.4%, and the index for utilities gained 2 percent. At 102.7% of its 2017 average, total industrial production in March was unchanged compared with its year-earlier level. Capacity utilization moved up to 78.4% in March, a rate that is 1.2 percentage points below its long-run (1972–2023) average.
Market Groups
Most major market groups recorded growth in March. The production of consumer durables gained 1.9%, bolstered by a 3.2% increase in the output of automotive products. Elsewhere, there were significant gains in the indexes of nondurable consumer goods (1.0%), defense and space equipment (0.9%), and business supplies (0.8%). In contrast, the production of energy materials decreased 0.3%, and the index for construction supplies declined 1.0%.
Industry Groups
Manufacturing output increased 0.5% in March and was 0.8% above its year-earlier level. For the first quarter, factory output ticked down 0.1% at an annual rate. The indexes for durable manufacturing and nondurable manufacturing moved up 0.3% and 0.7% in March, respectively, while the index for other manufacturing (publishing and logging) edged down 0.2%.
Industry groups within durable manufacturing posted mixed results in March. Significant gains were recorded in motor vehicles and parts (3.1%), aerospace and miscellaneous transportation equipment (1.2%), and wood products (0.7%). In contrast, the indexes for nonmetallic mineral products, for furniture, and for primary metals fell 1.8%, 1.0%, and 0.7%, respectively. Within nondurables, gains in the output of petroleum and coal products (4.8%) and chemicals (0.7%) were partially offset by a decline of 0.5 percent in the output of food, beverage, and tobacco products.
Mining output decreased 1.4% in March and fell at an annual rate of 12.3% in the first quarter. Declines in the output of oil and gas extraction, mining (except oil and gas), and support services for mining all contributed to the first quarter drop in mining output. In March, the output of utilities increased 2 percent, as both electric and natural gas utilities moved up.
Capacity utilization for manufacturing moved up 0.3 percentage point in March to 77.4%, a rate that is 0.8 percentage point below its long-run average. The operating rate for mining fell 1.3 percentage points to 91.0%, while the operating rate for utilities increased 1.2 percentage points to 69.%. The rate for mining was 4.5% points above its long-run average, while the rate for utilities remained substantially below its long-run average.
INDUSTRIAL SUPPLY MAGAZINE
The November/December issue of Industrial Supply magazine features an in-depth cover story about Kimball Midwest. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and Mike Marks, as well as interviews with numerous product and distribution industry experts.
