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US factory output extended solid gains in March

Published on NewsOK Modified: April 16, 2014 at 8:44 am •  Published: April 16, 2014
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WASHINGTON (AP) — U.S. factory output rose further last month, extending strong growth from February after harsh weather had caused production to tumble in January. Manufacturers produced more furniture, clothing, chemicals and aerospace products.

The Federal Reserve said Wednesday that factory production rose 0.5 percent in March after a revised 1.4 percent surge in February. Manufacturing output has climbed a solid 2.8 percent over the past 12 months.

Higher factory output is a sign of greater demand by businesses and consumers. The gains over the past two months point to a rebound after a winter slowdown in January and December stalled growth across the economy.

"The U.S. economy is now showing its true colors after the weakness triggered by the bleakest of winters," said Paul Dales, senior U.S. economist at Capital Economics. "There is scope for production to rise rapidly in the coming months, too."

Overall industrial production, which includes manufacturing, mining and utilities, rose 0.7 percent in March. In February, industrial production had expanded 1.2 percent.

Other recent manufacturing indicators have been mixed. They have signaled greater demand heading into spring and summer but not increased hiring.

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