March 2014 Industrial Production, Capacity Utilization and Capacity

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Industrial production increased 0.7 percent in March after having advanced 1.2 percent in February. The rise in February was higher than previously reported primarily because of stronger gains for durable goods manufacturing and for mining. For 1Q2014 as a whole, industrial production moved up at an annual rate of 4.4 percent, just slightly slower than in 4Q2013. In March, the output of manufacturing rose 0.5 percent, the output of utilities increased 1.0 percent, and the output of mines gained 1.5 percent. At 103.2 percent of its 2007 average, total industrial production in March was 3.8 percent above its level of a year earlier.

Wood Products output rose by 2.5 percent while Paper grew by 1.1 percent. 

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Capacity utilization for total industry increased in March to 79.2 percent, a rate that is 0.9 percentage point below its long-run (1972–2013) average but 1.2 percentage points higher than a year prior. Wood Products capacity utilization increased by 2.2 percent, and Paper 1.2 percent.

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Capacity at the all-industries and manufacturing levels both moved higher by 0.2 in March. Wood Products appears to have definitely turned a corner; capacity increased by 0.3 percent. Paper, on the other hand, contracted by 0.1 percent to another new low.

The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.