FOREX TradingCharts.com

Financial News: U.S. Industrial Production Unexpectedly Slumps 2.2% In Feb

U.S. Industrial Production Unexpectedly Slumps 2.2% In February

03/16/2021 - 10:11:00 (RTTNews)

(RTTNews) - With steep drops in manufacturing and mining output more than offsetting a sharp increase in utilities output, the Federal Reserve released a report on Tuesday showing an unexpected slump in U.S. industrial production in the month of February.

The Fed said industrial production tumbled by 2.2 percent in February after jumping by an upwardly revised 1.1 percent in January.

The pullback surprised economists, who had expected industrial production to climb by 0.6 percent compared to the 0.9 percent increase originally reported for the previous month.

The unexpected decrease in industrial production came as manufacturing output plunged by 3.1 percent in February after surging up by 1.2 percent in January.

Mining output also showed a substantial pullback during the month, plummeting by 5.4 percent in February following a 2.1 percent spike in January.

The Fed said the severe winter weather in the south central region of the country in mid-February accounted for the bulk of the declines in output for the month.

Excluding the effects of the winter weather, the central bank said manufacturing output would have dipped by just 0.5 percent and mining output would have risen by 0.5 percent.

Meanwhile, the report showed utilities output soared by 7.4 percent in February after falling by 0.6 percent in the previous month.

"With the weather returning to seasonal norms in March, all those distortions should be reversed soon, and the latest survey evidence suggests that underlying manufacturing demand remains strong," said Michael Pearce, Senior U.S. Economist at Capital Economics.

He added, "The big concern, however, is that the supply problems evident in the auto industry are the tip of the iceberg of more widespread global supply constraints that will prevent output from closing the gap with goods demand, especially with the latter set to be boosted by the latest round of stimulus checks."

The Fed also said capacity utilization for the industrial sector dropped to 73.8 percent in February from a revised 75.5 percent in January.

Economists had expected capacity utilization to inch up to 75.8 percent from the 56.6 percent originally reported for the previous month.

Capacity utilization in the manufacturing and mining sectors fell to 72.3 percent and 77.5 percent, respectively, while capacity utilization in the utilities sector jumped to 78.5 percent.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2021 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


New Zealand Central Bank Keeps Policy Unchanged (08 min(s), 36 sec(s) ago)
(RTTNews) - New Zealand's central bank left its monetary policy unchanged on Wednesday, as wid ...Full Story»

South Korea Jobless Rate Falls In March (06 min(s), 36 sec(s) ago)
(RTTNews) - South Korea's unemployment rate declined in March, data from Statistics Korea show ...Full Story»

European Economics Preview: Eurozone Industrial Output Data Due (57 min(s), 36 sec(s) ago)
(RTTNews) - Industrial production from euro area is due on Wednesday, headlining a light day for t ...Full Story»

Australia Consumer Confidence Index Jumps 6.2% In April - Westpac (35 min(s), 24 sec(s) ago)
(RTTNews) - Consumer confidence in Australia spiked in April, the latest survey from Wetspac Bank ...Full Story»

Singapore GDP Climbs 2.0% In Q1 - Advance Estimate (20 min(s), 24 sec(s) ago)
(RTTNews) - Singapore's gross domestic product expanded a seasonally adjusted 2.0 percent on q ...Full Story»

Japan Core Machine Orders Plummet 8.5% On Month In February (05 min(s), 24 sec(s) ago)
(RTTNews) - The value of core machine orders in Japan tumbled a seasonally adjusted 8.5 percent on ...Full Story»

Singapore GDP Jumps 2.0% In Q1 - Advance Estimate (49 min(s), 24 sec(s) ago)
(RTTNews) - Singapore's gross domestic product gained a seasonally adjusted 2.0 percent on qua ...Full Story»

Japan Core Machine Orders Tumble 8.5% On Month In February (35 min(s), 24 sec(s) ago)
(RTTNews) - The value of core machine orders in Japan was down a seasonally adjusted 8.5 percent o ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

South Korea Jobless Rate Falls In March

04/14/2021 - 01:23 AM (RTTNews)
(RTTNews) - South Korea's unemployment rate declined in March, data from Statistics Korea show ...Full Story>>

New Zealand Central Bank Keeps Policy Unchanged

04/14/2021 - 01:21 AM (RTTNews)
(RTTNews) - New Zealand's central bank left its monetary policy unchanged on Wednesday, as wid ...Full Story>>

European Economics Preview: Eurozone Industrial Output Data Due

04/14/2021 - 00:32 AM (RTTNews)
(RTTNews) - Industrial production from euro area is due on Wednesday, headlining a light day for t ...Full Story>>

Australia Consumer Confidence Index Jumps 6.2% In April - Westpac

04/13/2021 - 21:05 PM (RTTNews)
(RTTNews) - Consumer confidence in Australia spiked in April, the latest survey from Wetspac Bank ...Full Story>>

Singapore GDP Climbs 2.0% In Q1 - Advance Estimate

04/13/2021 - 20:50 PM (RTTNews)
(RTTNews) - Singapore's gross domestic product expanded a seasonally adjusted 2.0 percent on q ...Full Story>>

Do not sell my personal information

Copyright © 2021. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.