Industrial production (IP) fell 0.2% in March, seasonally adjusted, after rising steeply in February (0.7%) and January (0.8%), the Federal Reserve announced. Manufacturing IP was flat after rising 1.1% in February and 0.3% in January. Since March 2003, manufacturing IP has risen 3.6%.
Capacity utilization in manufacturing slipped to 75.2% of capacity from 75.3% in February (originally estimated as 75.2%). This is significantly higher factory utilization than the 73.3% recorded in March 2003 but is probably not enough to trigger demand for factory construction. Production of construction supplies rose 0.6% in March, 0.5% in February, and 4% since March 2003. The Fed noted, “Gains in construction machinery and in mining machinery helped to boost output in the industrial and other [business equipment] category.”