A recent Federal Reserve report says that total industrial production advanced 0.9% in March 2022. It rose at an 8.1% annual rate for the first quarter, while factory output grew at a 5.4% annual rate for the quarter. In addition, capacity utilization for manufacturing increased by 0.6 percentage points in March to 78.7%. The factory operating rate was above its long-run average of 78.1% for the first time since August 2018. This demonstrates a solid recovery from pandemic-induced operational disruptions.
Furthermore, President Biden’s trillion-dollar infrastructure spending aimed at rebuilding America’s roads, bridges, and rails, ensuring every American has access to high-speed internet, strengthening supply chains, and building a national network of electric vehicle (EV) chargers to fight the climate crisis is expected to bring new opportunities in the U.S. industrial market.
