Data released today showed that Industrial Production rose marginally in February. Analysts at Wells Fargo point out the 0.4% decline in February manufacturing output held back a more pronounced gain in industrial production. They see that the outlook for manufacturing activity remains under pressure.
“Industrial production rose a modest 0.1% in February. This followed a decline in January, which was entirely due to weakness in manufacturing. This core weakness remained in February, as manufacturing output fell 0.4%.”
“The Fed is no doubt watching the two consecutive declines in manufacturing. At the very least, this release reaffirms their patient stance on further policy tightening.”
“In a separate release this morning, we learned that the NY Fed’s Empire Index fell to 3.7 in March, suggesting a near-term rebound in manufacturing activity remains limited.”