Industrial Production Rises 0.4% on Higher Utility Output

Industrial production rose 0.4% in March, led by higher utility output, although factory production dipped 0.1%, the Federal Reserve said Tuesday.

The overall gain in output at factories, mines and utilities followed a 0.9% increase in February that was higher than originally reported.

The 0.4% gain was double economists’ median forecast, Bloomberg News reported.

Manufacturing output, which makes up about three-quarters of the total, was forecast to rise 0.1%, Bloomberg reported.

The 5.3% increase in utility output was due primarily to colder than normal temperatures, Bloomberg said.

Motor vehicle and parts production jumped 2.9%, following a 2% increase the prior month.

Capacity utilization, which measures plant output, increased to 78.5% from 78.3% in February, the Fed said.

Manufacturing accounts for about 12% of the U.S. economy. The factory sector is one of trucking’s largest and most important customers.