US industrial production unexpectedly fell 0.2 per cent in March after strong gains the previous two months, the Federal Reserve reported today.
Capacity utilisation fell to 76.5 per cent from 76.7 per cent, the first decline since June. Economists were expecting production to rise 0.3 per cent and capacity utilisation to increase to 76.8 per cent.
Production is up 3.4 per cent in the past 12 months after rising a revised 0.8 per cent in February and 0.7 per cent in January. In the first quarter, production rose at an annual rate of 6.6 per cent, the fastest growth since the second quarter of 2000.
Manufacturing output was unchanged in March after rising 1.1 per cent in February. Manufacturing production increased at a 5.9 per cent rate in the quarter. Output of utilities fell 2.3 per cent in March , the largest decline in a year, "because of unseasonably warm weather," the Fed said.
Production of consumer goods fell 0.4 per cent in March on falling output of both durables and nondurables.
Production of business equipment fell 0.2 per cent in March, but rose at an annual rate of 11.7 per cent for the quarter. Production of transportation equipment fell 1.8 per cent while production of information processing equipment dropped 0.2 per cent, despite a rise in computers.