Wall Street Journal (03/16/15) Josh Mitchell

U.S. industrial production rose a seasonally adjusted 0.1% in February from January, according to the U.S. Federal Reserve, but a fall in manufacturing output reflected an economy that retreated in the first quarter. Utility output soared during unusually cold weather, but factory and mining production fell, reflecting weaker demand and cuts in the energy sector.

Capacity utilization, a measure of slack in the industrial sector, fell two-tenths of a percentage point to 78.9. Lower capacity utilization could encourage companies to delay investment, which would hinder economic growth. Capacity utilization has risen steadily during the recovery but has not topped the above-80 level seen just before the recession began in late 2007.

Economists polled by the Wall Street Journal had forecast a 0.2% increase in industrial production and capacity utilization of 79.5%. Meanwhile, updated numbers show January industrial production was far weaker than initially estimated. Production declined 0.3% in January instead of the previously reported gain of 0.2%.

Federal Reserve Bank of New York (03/16/15)

Business activity continued to expand at a modest pace for New York manufacturers, according to the March 2015 Empire State Manufacturing Survey. The headline general business conditions index, at 6.9, remained close to last month’s level. Twenty-six percent of respondents reported that conditions improved, while 19% reported that conditions worsened. The new orders index fell four points to -2.4, suggesting a small decline in orders, and the shipments index declined six points to 7.9.

The index for number of employees climbed eight points to 18.6, pointing to significant gains in employment, and the average work week rose six points to 5.2, indicating a small increase in the average work week.