Industrial production remained flat for a second month in March, but rose at an annual rate of 5.4% in the first quarter. Manufacturing output receded 0.2% in March but in the first quarter improved 10.4% at an annual rate. The first quarter annual rate of motor vehicles and parts production was up 40.0%, and even when removing that metric, manufacturing output in the quarter still advanced 8.3% annualized. Given the unseasonably warm weather, utilities output in the first quarter retreated 13.8% at an annual rate. At 96.6% of its 2007 average, March’s total industrial production was 3.8% above its year-earlier level. March’s total industry capacity utilization rate of 78.6% was 2.1 percentage points above the year-ago measure.
The Purchasing Managers Index (PMI) continued to exhibit growth in April, with a reading of 54.8% compared to 53.4% in the previous month. Generally, a PMI reading exceeding 42.6% for an extended period signifies an expansion of the overall economy. Sixteen out of 18 manufacturing industries reported growth, including chemical products; computer & electronic products; electrical equipment, appliances & components; fabricated metal products; machinery; petroleum & coal products; plastics & rubber products; primary metals; and transportation equipment.
As more Americans exhibited pessimism regarding short-term economic conditions, the Consumer Confidence Index retreated slightly from 69.5 in March to 69.2 in April.
Following a 1.9% increase in February, new orders for manufactured durable goods decreased 4.0% in March to $203.0 billion, largely due to a $7.1 billion decline in transportation equipment. March shipments of manufactured durable goods increased 0.9% from February, to $208.8 billion, led by a $2.0 billion improvement in machinery.
The gross domestic product (GDP) grew at an annual rate of 3.0% in the fourth quarter of 2011 and, according to initial estimates, improved 2.2% in the first quarter of 2012. The improvement is attributed to numerous factors including exports, motor vehicle output, and personal expenditures.
The chemical and allied products producer price index increased to 283.6 in March 2012 from 279.0 in February.
