Manufacturing output increased a half-percent in March amid a 3 percent rise in motor vehicle and parts production, according to the Federal Reserve.
New vehicle sales were expected to rise 12.1 percent last month amid strong demand and vehicle availability, according to a report from data analytics firms J.D. Power and GlobalData. Consumers were expected to spend a record-setting more than $129 billion in buying new vehicles in the first quarter of this year, according to the report.
Manufacturing output was 0.8 percent above its year-ago mark in March, according to the Federal Reserve. The index for mining fell 1.4 percent, and the index for utilities increased 2 percent. Industrial production increased 0.4 percent in March but fell at an annualized rate of 1.8 percent in the first quarter. The indexes for durable and nondurable manufacturing increased 0.3 percent and 0.7 percent, respectively, in March, while the index for publishing and logging manufacturing fell 0.2 percent.
The production of consumer durables increased 2 percent, sparked by a 3.2 percent rise in the output of automotive products. There was also a 1 percent increase in nondurable consumer goods production; 0.9 percent rise in defense and space equipment; and 0.8 percent jump in business supplies. The production of energy materials fell 0.3 percent, and the index for construction supplies dropped 1 percent.
Mining output dropped 1.4 percent in March, and fell at an annual rate of 12.3 percent 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,” according to the Federal Reserve. “In March, the output of utilities increased 2 percent, as both electric and natural gas utilities moved up.”
Total industrial production, at 102.7 percent of its 2017 average, was unchanged from its year-earlier mark. Capacity utilization for the industrial sector increased to 78.4 percent in March, 1.2 percentage points under its long-term average. Capacity utilization for manufacturing increased 0.3 percentage points in March to 77.4 percent, which was 0.8 percentage points under its long-term average. The operating rate for mining fell 1.3 percentage points to 91 percent, which was 4.5 percentage points above its long-term average. The operating rate for utilities increased 1.2 percentage points to 69.1 percent, substantially below its historical average.