US March industrial production +0.4% versus 0.4% expected

• Prior month 0.1% revised to 0.4%
• Industrial production 0.4% versus 0.4% expected. Largest increase sense August 2023
• Capacity utilization 78.4% versus 78.5% expected
• Prior month capacity utilization 78.3% revised lower to 78.2%.
• Manufacturing output for March 0.5% versus 0.3% expected. Prior month revised higher to 1.2% from 0.8% previously reported.

Looking at the capacity utilization chart below, rates remain high but near the lower end of the recent range over the last few years.

Notes from the Fed:

• Industrial production increased by 0.4% in March, though it saw a decline of 1.8% at an annual rate for the first quarter.
• Manufacturing output rose by 0.5% in March, with motor vehicles and parts production up by 3.1%.
• Excluding motor vehicles and parts, factory output increased by 0.3%.
• The mining index declined by 1.4%, while the utilities index saw a 2% increase.
• Total industrial production in March remained unchanged from the previous year, standing at 102.7% of its 2017 average.
• Capacity utilization for the industrial sector improved to 78.4% in March, still 1.2 percentage points below the long-run average from 1972 to 2023.