Growth in motor vehicle, parts production sparks rise in manufacturing

Manufacturing output increased 0.9 percent last month amid a significant rise in the index for motor vehicles and parts, according to the Federal Reserve. .Sparked by a rise in the index for motor vehicles and parts, the durable manufacturing index increased 1.6 percent. The nondurable manufacturing index slightly increased, with a growth in chemicals offsetting a drop in food, beverage and tobacco products. The index for publishing and logging slightly dropped. Industrial production increased 0.7 percent in February, following a 0.3 percent rise in January. Total industrial production in February, at 104.2 percent of its 2017 average, was 1.4 percent higher than its year-earlier mark. Capacity utilization increased to 78.2 percent, which was still 1.4 percentage points under its long-term average. The index for mining increased 2.8 percent, while the index for utilities increased 2.5 percent. “Most market groups posted gains in February,” according to the Federal Reserve. “The output of consumer goods gained 0.2 percent, as a 4.3 percent increase in the production of durable consumer goods outweighed a decline of 0.8 percent in the production of nondurable consumer goods.” Business equipment output increased 1.6 percent, with transit equipment rising nearly 8 percent. Construction supplies increased 1.0 percent. The utilities index dropped 2.5 percent as the output for natural gas utilities and electric utilities dropped 11.1 percent and 1.2 percent, respectively. Capacity utilization for manufacturing increased 0.6 percentage points last month to 77.0 percent, which is 1.2 percentage points under its long-term average. The operating rate for mining increased 2.4 percentage points to 90.3 percent, while the utilities operating rate dropped 2.2 percentage points to 73.9 percent, well under its long-term average.