U.S. housing starts rose 2.8% to a 946k pace in March U.S. housing starts rose 2.8% to a 946k pace in March from February's 1.9% gain to 920k (revised up from 907k). This is a second month of increase (4.7% cumulative) after declines 11.8% in January and 7.0% in December. Single family starts rose 6.0%, with multi-family falling 3.1%. Building permits fell 2.4% to 990k from a revised 1014k (was 1014k). Data are a little light compared to expectations.
U.S. industrial production rose 0.7% in March with capacity utilization at 79.2% U.S. industrial production rose 0.7% in March with capacity utilization at 79.2% (the highest since June 2008). The 0.6% February increase in production was revised higher to 1.2%, with January's -0.1% revised to -0.2%. Capacity utilization was bumped up to 78.8% in February from 78.4% previously. Manufacturing production rose 0.5% last month versus a 1.4% February rebound (was 0.9%). Motor vehicle and parts production fell 0.8%. Machinery production slid 0.3%. Computer and electronic production was up 1.0%. Utilities rebounded 1.0% after a revised 0.3% February drop (was -0.2%). Mining rose 1.5%. Data are much better than expected and are likely to pressure Treasury yields higher.
U.S. Industrial Production Preview U.S. Industrial Production Preview: March industrial production is expected to be up 0.4% (median 0.2%) following the 0.6% bounce in February. There is some upside risk to the report from the stronger hours worked data that was released in the March employment report.