APR. INDUSTRIAL PRODUCTION DOWN 0.7%, CAPACITY UTILIZATION 79.7%
Industrial Production fell 0.7% in Apr., more than the expected 0.3% drop and lower than the downwardly revised Mar. rise of 0.2%, previously reported as 0.3%.
Capacity utilization fell to 79.7% — below expectations — after reading 80.4% in Feb. (originally reported as 80.5%).
Based on preliminary estimates, Industrial Production edged down at a 0.2% annual rate in Q1, compared to a 0.4% annual rate of growth in Q4.
Industrial production was dragged down in Apr. by a 0.8% decline in manufacturing output. The drop was driven by a 8.2% decline in motor vehicle and parts output.
Manufacturing production was flat in Mar. (previously reported as up 0.1%).
Utilities output was up 0.3% after a downwardly revised 0.7% increase in Mar. (previously reported as a 1.9% rise). Mining output declined 0.8%.
Other sectors maintained downward trends, especially in durable goods industries, with automotive output shrinking 7.8%. FED officials cited strikes and strike-related parts shortages (American Axle) as slowing factors for that category.
Equities and the dollar aren’t going to like this data, which reflects erosion in the real economy.