U.S. Industrial Production (Mar) Actual -1.5 %, Expected -0.9%, Previous -1.5%
U.S. Capacity Utilization (Mar) Actual 69.3%, Expected 69.7%, Previous 70.3%
Release Explanation: The total value of the output from mines, industrial factories and utilities is in the Industrial read. The value of manufactured goods is in the Manufacturing read. The Shipment number covers the amount sent abroad. Capacity Utilization cover at what rate Factories are running at compared to the maximum. High production numbers usually denote an economy in an upwards trend, or growth period. “These reports are reactive to change and are well respected. GDP will normally be directly affected by the Industrial Production component, while Durable Goods and Retail Sales will normally be affected by the Manufacturing aspect of the report. A currency will eventually be affected by these numbers, but only once they filter through to the main releases”, TheLFB-Forex.com trade team members said.
Trade Desk Thoughts: Industrial Production fell 1.5% in March after a similar decrease in February. For the first quarter, output dropped at an annual rate of 20%, the largest quarterly decrease of the current contraction. Output in March fell to its lowest level since December 1998, nearly 13% below the previous year.
Factory output decreased in March by 1.7% and dropped at an annual rate of 22.5%, for the first quarter. The production index for durable goods fell 2.4% in March and contracted at an annual rate of more than 30% for the first quarter.
Capacity utilization rates in March fell to 69.3%. At the crude stage, utilization dropped 1.8% to 79.5%. At the primary and semi-finished stages, utilization dropped 1.1% to 66.8% and at the finished stage; utilization dropped 0.6% to 67.9%.
Forex Technical Reaction: Stocks opened lower after S&P futures declined overnight. The dollar has not had much of a reaction to the release and is still trading mixed against the other major currencies.