Copyright Bill Pugliano, Getty Images
Industryweek 20747 Manufacturing Us G 595 Billpugliano
Industryweek 20747 Manufacturing Us G 595 Billpugliano
Industryweek 20747 Manufacturing Us G 595 Billpugliano
Industryweek 20747 Manufacturing Us G 595 Billpugliano
Industryweek 20747 Manufacturing Us G 595 Billpugliano

US Factory Output Falls Most Since August Amid Drop in Autos

April 18, 2017
The weakness in auto manufacturing mirrors a slowdown in sales to consumers, indicating that a broader recovery in factories remains bumpy.

Output at U.S. manufacturers fell in March by the most since August as production of automobiles and parts and business equipment declined, Federal Reserve data showed on Tuesday.

Key Points: Factory production dropped 0.4%, following a 0.3% rise in February (forecast called for unchanged); total industrial production gained 0.5% on a record jump in utility output (forecast called for 0.5% rise); and capacity utilization, which measures the amount of a plant that is in use, rose to 76.1% from 75.7% in the prior month (forecast called for 76.1%).

Big Picture

The weakness in auto manufacturing mirrors a slowdown in sales to consumers, indicating that a broader recovery in factories remains bumpy, with production rising 0.8% last month from a year earlier. The rebound in utility output follows two months of sharp declines amid unusually warm weather and may reflect stronger demand for heating with March temperatures that were a bit more seasonal.

Among other details:

• Utility output rose 8.6%, the most in data going back to 1939, after a 5.8% drop the previous month.

• Production of motor vehicles fell 3%, the most since last May. Excluding autos and parts, industrial production fell 0.3% after a 0.4% rise.

• Oil and gas well drilling rose 7.7%.

• Production of non-energy materials fell 0.6% after a 0.7% gain.

• Production of nondurable consumer goods rose 2.1%, while output of business equipment decreased 0.4%.

• Machinery production fell 0.5% and output of computers and electronics rose 0.9%.

By Patricia Laya

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