Overview of March’s Industrial Production Data
U.S. industrial production showed a commendable increase of 0.4% in March, aligning with the market expectations. This growth comes on the heels of a similar 0.4% rise witnessed in February, which was revised from an initial figure of 0.1%. Notably, manufacturing production grew by 0.5% in March, a slight slowdown from the previous month’s 1.2% surge, later revised from 0.8%.
Insights into Durable and Nondurable Manufacturing
In the durable manufacturing sector, the index saw a 0.3% climb in March. This increase was bolstered by notable gains in motor vehicles and parts, surging by 3.1%, as well as aerospace and miscellaneous transportation equipment, which saw a growth of 1.2%. On the flip side, nondurable manufacturing recorded a 0.7% rise, largely fueled by upticks in petroleum and coal products at 4.8% and chemicals at 0.7%, respectively.
Capacity Utilization and Market Group Performance
Capacity utilization stood at 78.4% in March, marginally lower than the prior month’s 78.5% and revised figure of 78.3%. The Federal Reserve reported significant growth across major market groups. Consumer durables production surged by 1.9%, nondurable consumer goods by 1.0%, and defense and space equipment by 0.9%. However, a dip of 0.3% was seen in energy materials production and a 1.0% decline in construction and supplies index.