Industrial production fell last month

Industrial production fell 0.5 percent last month due to reduced heating demand and mining output, according to the Federal Reserve. Despite the decrease, industrial production still increased at a 2.4 percent annual rate in the first quarter. .Manufacturing output ticked down 0.1 percent last month but still increased at a 3.0 percent rate in the first quarter. The indexes for utilities and mining decreased 2.3 percent and 1.2 percent, respectively. At 101.8 percent of its 2017 average, total industrial production was 0.7 percent higher than its year-earlier mark. Capacity utilization dropped to 75.7 percent, 3.7 percentage points under its long-term average. Durable goods production dropped 0.2 percent amid less output of motor vehicles and parts, which dropped 3.7 percent. Also declining was the output of machinery and primary metals along with furniture and related products. “Production slowed in most market groups in March,” according to the Federal Reserve. “Declines in the indexes for consumer goods, for business equipment and supplies, and for materials were partially offset by growth in the output of construction supplies and of defense and space equipment.” The index for consumer durable goods fell 1.8 percent, led by a nearly 3 percent drop in the production of automotive products. A nearly 1 percent drop in the index for consumer nondurables was led by a 2.1 percent fall in consumer energy production.The index for business equipment fell 0.3 percent, with less production of transit equipment more than making up for increased production of information processing equipment and of industrial and other equipment. The output of materials dropped 0.6 percent, led by drops in the output of consumer parts and energy materials. “In particular, only the indexes for petroleum and coal products, for plastics and rubber products, and for paper increased, while all other nondurable indexes decreased,” according to the Federal Reserve. Capacity utilization for manufacturing decreased 0.2 percentage points to 75.3 percent in March, nearly 3 percentage points under its long-term average. The operating rate for mining fell 1 percentage point to 84.5 percent, and the utilities operating rate fell 1.8 percentage points to 70.3 percent. Mining output dropped 1.2 percent, while the utilities index contracted 2.3 percent, with drops in the output of natural gas and electric utilities.