US Industrial Production Rose in March

Overall U.S. industrial production rose 0.5 percent in March because of an 8.6 percent weather-driven surge in utilities generation, the Federal Reserve said on Tuesday.

That was the largest increase in utilities output on record, which resulted from heating demand returning to so-called seasonal norms after being suppressed by unusually warm weather in February, the Fed explained.

Economists were expecting an increase in industrial production of 0.5 percent in March, according to a poll by Thomson Reuters.

Factory output, though, fell unexpectedly in March, charting its biggest decline in seven months as auto production contracted in a check on the manufacturing sector’s expansion, according to the Fed’s latest report.

The group said on Tuesday that manufacturing production dropped 0.4 percent last month. February’s output was revised down to show a 0.3 percent gain instead of the previously reported 0.5 percent increase.

The decline in the manufacturing index in March was its first loss since August 2016, and among its major components, only computer and electronic products registered an increase of roughly 1 percent, and motor vehicles and parts recorded the largest decrease of 3 percent, the Fed added.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza