| Consensus | Actual | Previous | Revised | |
|---|---|---|---|---|
| Month over Month | 0.3% | -0.5% | 0.1% | 0.0% |
| Year over Year | -3.5% | -3.1% | -3.3% |
Highlights
Industrial production was surprisingly weak in March. A 0.5 percent monthly decline easily undershot the market consensus and with February's minimal 0.1 percent gain revised away, means output has not expanded since December. Annual workday adjusted growth was minus 3.5 percent, down from minus 3.3 percent.
Weakness was broad-based and but for a 1.7 percent rise in energy, the monthly headline decline would have been still steeper. Intermediates fell only 0.1 percent but consumer goods were down 0.6 percent, their fourth decrease in the last five months, and capital goods fully 3.8 percent.
The March update leaves overall industrial production 1.3 percent lower on the quarter, its fourth straight quarter of negative growth and a reminder of the importance of services to what is a shallow upswing in total output. It also puts the Italian RPI at minus 17 and the RPI-P at minus 10. Economic activity in general continues to lag market forecasts.
Weakness was broad-based and but for a 1.7 percent rise in energy, the monthly headline decline would have been still steeper. Intermediates fell only 0.1 percent but consumer goods were down 0.6 percent, their fourth decrease in the last five months, and capital goods fully 3.8 percent.
The March update leaves overall industrial production 1.3 percent lower on the quarter, its fourth straight quarter of negative growth and a reminder of the importance of services to what is a shallow upswing in total output. It also puts the Italian RPI at minus 17 and the RPI-P at minus 10. Economic activity in general continues to lag market forecasts.
Market Consensus Before Announcement
Having expanded, but still surprised on the downside in February, goods production is expected to rise a further 0.3 percent on the month in March.
Definition
Industrial production measures the physical output of the nation's factories, mines and utilities. Construction is excluded. Approximately 4,100 companies provide data on more than 8,000 monthly flows of production.
Description
Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that will not lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios. Like the PPI and the orders data, construction is excluded from the data. This report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. Are manufacturers still producing construction supplies and other materials? This detailed report shows which sectors of the economy are growing and which are not.
