Mixed news on the economic front again today, with the release of index figures for industrial production and prices, and consumer prices for March.
Industrial production increased 0.8 percent in March and rose at an annual rate of 6.0 percent for the first quarter as a whole. Manufacturing output increased 0.7 percent in March, its fourth consecutive month of strong expansion, producing an annual rate of 9.1 percent for the first quarter.
Production of consumer goods increased 0.9 percent in March and rose at an annual rate of 4.9 percent in the first quarter. The production of automotive products advanced 3.6 percent and was 15.4 percent above its level in March last year. The index for home electronics increased 0.7 percent, and the index for appliances, furniture, and carpeting climbed 2.0 percent.
Outside of manufacturing, mining output rose 0.6 percent in March, while the output of utilities increased 1.7 percent after declining significantly in the preceding two months. Gains in natural gas extraction, support activity for mining, and metal ore mining more than offset a decrease in coal mining.
The output of construction supplies rose 1.5 percent in March. This index has risen more than 12 percent from its trough during December 2009 but remains about 25 percent below its peak in December 2006.
In March, sizable gains in output were also recorded in the following industries: wood products, fabricated metal products, nonmetallic mineral products, and aerospace and miscellaneous transportation equipment.
On the downside, however, prices paid by US factories gathered pace in March as the disruption caused by Japan's earthquake began to make itself felt. The Labor Department’s index for prices paid at the farm and factory gate (excluding volatile food and energy costs) rose 0.3 percent after gaining 0.2 percent in February.
In the year to March, the core producer price index rose 1.9 percent, its biggest increase since August 2009.
The Consumer Price Index for March was also released today by the US Bureau of Labor Statistics, revealing an increase of 0.5 percent for the month on a seasonally adjusted basis, and 2.7 percent for the year.
The indexes for new vehicles, used cars and trucks, airline fares, and medical care are among those that have increased over the past year; the indexes for apparel, household furnishings and recreation have declined.
