NAM: Manufacturing rebound continues while industrial production falls
The Wall Street Journal reports that on Wednesday, the Federal Reserve announced industrial production fell a seasonally adjusted 0.5 percent in February after rising 0.8 percent in January, according to revised numbers. The Journal states total production in February was down 1.0 percent compared to the same month in 2015, marking the fourth straight year of declines. However, manufacturing production rose for the second straight month, climbing 0.2 percent in February after rising 0.5 percent in January.
The AP reports US factory production rose again last month in “a sign manufacturing may be stabilizing after a difficult year.” The AP adds that other areas of industrial production dropped, with utility production falling 4 percent “as mild temperatures lowered demand for heat” and “mining output, which includes oil and gas drilling, fell 1.4 percent, a result of low oil prices.”
According to Bloomberg News, a survey of economists had projected manufacturing output to rise 0.1 percent and total industrial production to drop 0.3 percent. The article states “American factories might be catching a break from a modest climb in energy prices even as they battle dollar appreciation in a bid to regain momentum after months of malaise.”
A separate analysis by Bloomberg News states that the economic data suggests “Manufacturing finally seems to be finding its footing” as factories “cranked out more business equipment…as well as consumer durable goods.”
Reuters also reports on the Fed’s economic report.
Associated Industries of Missouri is the sole official designated partner of the National Association of Manufacturers in Missouri.