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Industrial Production: Slight Re-Acceleration

March 17, 2022
Bottom Line: Industrial production rose as expected in February, even as utility production slowed following strong weather-related demand in January. The increase was even more impressive given another month of contracting auto production as manufacturers idled plants due to semiconductor shortages. High tech industries led the gains, as the aerospace industry also continued to rebound. Overall, US industrial production remains robust. After hints of decelerating activity, IP has the potential to re-accelerate if automakers can get the chips they need to build cars and meet record demand.
Industrial Production ROSE by 0.53% in February, compared with market expectations for an increase of 0.5%.  Moreover, the prior month was revised from 1.4% down to 1.4%. Output is now 7.5% ABOVE its year-ago level.
Mining Output ROSE by 0.1%, and is now 17.3% ABOVE its year-ago level. Utility Generation FELL by 2.7% and is now 1.3% BELOW its year-ago level.
Manufacturing Output ROSE by 1.2% and is now 7.4% ABOVE its year-ago level.Output in high-tech industries rose by 1.7%. Meanwhile, output in the motor vehicle industry fell by 3.5%. Excluding both the high-tech and motor vehicles industries, industrial output climbed by 1.5%.
Capacity Utilization ROSE by 0.3 points to 77.6%, compared with market expectations for a higher increase  to 77.9%.  Moreover, the prior month was revised from 76.8% to 77.3%.
Article by Contingent Macro Advisors