Industrial production fell 1.5% in March, worse than the estimated decline of 0.9% after falling a revised 1.5% in February. Capacity utilization continued to decline, and was a record low 69.3% for this series, which began in 1967, and was lower than the expected 69.7%, and February’s revised 70.3%.
After a 3% drop in energy prices, the Consumer Price Index fell 0.1% in March, compared to the forecast that called for a 0.1% gain. The core rate, which excludes food and energy, was up 0.2%, topping the forecast of 0.1%. Year-over-year, the headline rate fell to -0.4% from 0.2%.
The Empire Manufacturing Index, a measure of manufacturing in New York, increased to -14.65 from -38.23, much better than the estimate of -35.00, indicating economic activity is contracting at a slower pace. The index of new orders, while still negative, shot up 41 points to -3.9.
The Federal Reserve Beige Book was released mid-day, which includes information on monthly regional economic conditions through April 6. Five of the twelve district banks noted a moderation in the rate of decline, an improvement from the last report where weaker conditions or declines were noted in ten of twelve districts. More from Bloomberg...
