Factory output continues climb in March

WASHINGTON -- U.S. factories produced more consumer goods, business equipment and raw materials in March, boosting manufacturing activity for the ninth straight month.

Output at the nation's factories, mines and utilities increased 0.8 percent last month after edging up 0.1 percent in February, the Federal Reserve said Friday. February's results were dragged down by a weather-related drop in utility production.

Factory production, the largest single segment of industrial production, increased 0.7 percent last month. Manufacturing has been a key driver of economic growth since the recession ended. That continued last month, even with supply-chain disruptions stemming from the crisis in Japan.

Overall industrial production has risen about 12 percent since its recession-low in June 2009. It is still about 7 percent below its pre-recession peak, reached in September 2007.

Construction goods showed the sharpest increase of any major market group, rising 1.5 percent. Still, production of construction goods is 25 percent below its pre-recession peak, reached in December 2006.

Consumer goods also rebounded strongly, increasing 0.9 percent after flatlining for two months. Strong gains were seen for longer-lasting items such as appliances, home electronics and automotive products. Output of products with shorter shelf lives, such as food, clothing and tobacco, decreased.

Automotive output rose 3.6 percent and is more than 15 percent higher than a year ago. An effort to streamline product lines has made the industry more efficient. Consumers are also replacing older vehicles that they held on to during the recession. --