Fed: March industrial production .5% up over 2022
The Fed reported industrial production rose 0.4% in March and was little changed in the first quarter, increasing at an annual rate of 0.2%. Releasing information on the annual revision to industrial production and capacity utilization, the board said April 14 that manufacturing and mining output each fell 0.5 percent in March.
The index for utilities jumped 8.4%, as the return to more seasonal weather after a mild February boosted the demand for heating. At 103.0 percent of its 2017 average, total industrial production in March was 0.5% above its year-earlier level. Capacity utilization moved up to 79.8% in March, a rate that is 0.1 percentage point above its long-run (1972–2022) average.
Market Groups
The major market groups posted mixed results in March. Nondurable consumer goods, business supplies, and energy materials all recorded notable gains as a result of the jump in the output of utilities. Defense and space equipment posted the only other gain, increasing 0.8%. Construction supplies recorded the largest drop (1.8%), followed by business equipment (1.0%), durable consumer goods (0.9%), and non-energy materials (0.5%).
Industry Groups
Manufacturing output decreased 0.5% in March and was 1.1% below its year-earlier level. For the first quarter as a whole, the manufacturing sector edged up 0.3% at an annual rate.
The indexes for durable manufacturing and nondurable manufacturing moved down 0.9% and 0.1% in March, respectively, while the index for other manufacturing (publishing and logging) fell 0.7%. Most durables industries posted losses; wood products posted the largest drop, of 2.9%, followed by nonmetallic mineral products, which fell 2.6%. Within nondurables, gains of at least 1% were registered by apparel and leather and by petroleum and coal products; chemicals posted the largest loss, at 0.9%.
Mining output slipped 0.5% in March, with declines in the indexes for oil and gas extraction, other mining, and support activities. The output of utilities jumped 8.4%, with advances for both electric and natural gas utilities.
Capacity utilization for manufacturing moved down 0.5 percentage point in March to 78.1%, a rate that is 0.1 percentage point below its long-run average. The operating rate for mining fell 0.5 percentage point to 91.1%, while the operating rate for utilities jumped 5.6 percentage points to 75.3%. The rate for mining was 4.7 percentage 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.
