U.S. March Industrial Production - Manufacturing backing improved ISM signal
March industrial production with a 0.4% increase was in line with expectations though manufacturing with a rise of 0.5% exceeded expectations and there appears to be some underlying improvement there.
The manufacturing increase follows a 1.2% bounce in February that corrected a 1.1% decline in January that was impacted by bad weather. March’s data, particularly with February revised up from a 0.8% increase to mean that January’s slide was already reversed, does suggest some underlying improvement from a recently flat trend.
This coincides with a March move in the ISM manufacturing index above the neutral 50. The manufacturing rise was boosted by autos, though even ex autos a 0.3% increase was seen.
Mining slipped by 1.4% while utilities rise by 2.0%, moving in the opposite direction to each other and their own series’ previous outcome for a fourth straight month. Overall industrial production saw a second straight 0.4% increase after a 0.8% decline in January, so unlike manufacturing has not moved significantly above its December level.
