U.S. industrial production rose in February for the fifth time in six months and consumer prices
stayed in check, economic reports may show this week.
With inflation low, the Federal Reserve is expected to keep its benchmark interest unchanged. The Fed may say today that its gauge of work done at U.S. factories, mines and utilities rose 0.4 percent last month after a 0.8 percent gain in January, based on the median estimate in a Bloomberg News survey.
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On Wednesday, the Labor Department is expected to say consumer prices excluding food and energy rose 0.1 percent, half of January’s pace, Bloomberg reports.
Little inflation, excess plant capacity and the weakest job growth of any economic expansion since World War II are allowing Fed policy makers to keep the overnight lending rate at 1 percent, the lowest since 1958. None of 90 economists polled by Bloomberg expects a rate increase at Tuesday’s Federal Open Market Committee meeting, according to Bloomberg.
The Fed’s industrial production report today may show the amount of factory capacity in use may have risen to 76.4 percent from January’s 76.2 percent, based on the median forecast.
Two regional factory reports from the Fed may show that manufacturing activity slowed in March. Companies have been carrying the lowest inventories on record while corporate spending has accelerated, according to reports.
Economic growth may increase to a 4.5 percent annual rate this quarter as order flows pick up at factories, according to a survey last week of economists by Bloomberg News.
Bloomberg News
