-David Crowe, NAHB chief economist
US industrial production dropped more than expected in March and posted the first quarterly fall since the end of the Great Recession. Industrial production, which measures the output of manufacturers, utilities and mines, declined a seasonally adjusted 0.6% from the previous month, according to the Federal Reserve. The main contributor to the fall came from a payback in utility output, which contracted 5.9% from the prior month. In addition to that, production of mines fell 0.7%, marking the fifth decline in six months, as lower crude oil prices continue to weigh on the sector. For the first quarter of 2015, industrial production declined at an annual rate of 1%.
A separate report showed sentiment among US homebuilders rebounded after a three-month slide and rose to the highest level this year. The NAHB/Wells Fargo Housing Market index increased to a preliminary 56 in April from a revised 52 in the preceding month. Readings above 50 mean more builders see housing market conditions as favourable than poor. The reading has not been below the 50-mark threshold since June 2014 and stood at 46 during April 2014. Moreover, builders are feeling confident about the outlook for the rest of the year, as the gauge, which tracks sales expectations for the next six months, increased to 64 points, its highest level so far this year.
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