Economic Watch: Industrial Production Weakens, Homebuilder Optimism Up
For the first quarter of 2015 this measure of the total activity at the nation’s factories, mines and utilities declined at an annual rate of 1%, the first quarterly decrease since the second quarter of 2009.


Industrial production in the U.S. decreased 0.6% in March after increasing an unrevised 0.1% in February, according to a new Federal Reserve report.
For the first quarter of 2015 this measure of the total activity at the nation’s factories, mines and utilities declined at an annual rate of 1%, the first quarterly decrease since the second quarter of 2009.
The decline last quarter resulted from a drop in oil and gas well drilling and servicing, as well as from a decrease in manufacturing production of 1.2%.
In March, manufacturing output moved up 0.1% for its first monthly gain since November. However, factory output in January is now estimated to have fallen 0.6%, about twice the size of the previously reported decline.
American Trucking Associations Chief Economist Bob Costello described the slight upturn in March from the month before as “not what we were hoping for” in his Twitter feed, and noted that it will be interesting to see what this means for monthly truck tonnage figures when they are soon released.
At 105.2% of its 2007 average, total industrial production in March was 2% above its level of a year earlier. Capacity utilization for the industrial sector decreased 0.6 of a percentage point in March to 78.4%, a rate that is 1.7 percentage points below its 1972–2014 average.
Homebuilders Feeling More Optimistic
Meantime, a separate economic report shows builder confidence in the market for newly built, single-family homes in April rose four points to a level of 56, hitting a three-month high, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
“The HMI component index measuring future sales expectations rose five points in April to its highest level of the year,” said NAHB Chief Economist David Crowe. “This uptick shows builders are feeling optimistic that the housing market will continue to strengthen throughout 2015.”
A number over 50 indicates that more builders view conditions as good than poor.
All three HMI components registered gains in April. The component charting sales expectations in the next six months jumped five points to 64, the index measuring buyer traffic increased four points to 41, and the component gauging current sales conditions rose three points to 61.
More Fleet Management

Kodiak Lines Up Fleets for Driverless Trucking
An agreement for 75 trucks, a new Texas freight lane, and progress on safety validation move Kodiak closer to its planned driverless highway launch.
Read More →
ITS Logistics Settles Religious Harassment Case
The Nevada-based logistics firm agreed to pay more than $396,000 to settle a religious harassment charge involving an employee's Jewish identity.
Read More →
Your Trucks Are Busy. That Doesn’t Mean They’re Winning.
High utilization doesn’t always mean strong margins. Looking beyond the current load can help fleets make better dispatch decisions and get more value from each truck’s time.
Read More →
Why This Trucking Recovery Is Different
Freight demand remains sluggish, but rising costs and tougher enforcement have taken enough capacity out of the market to change the outlook for motor carriers.
Read More →
Platform Science Adds Dispatch and Safety Tools
Four additions to PS Fleet help fleets monitor loads, manage driver coaching, share truck locations and adjust video system settings.
Read More →
PrePass Intelligence Mines Fleet Bypass, Toll and Safety Data
PrePass Intelligence helps fleets measure bypass savings, flag potential toll overcharges, and spot suspicious transactions by combining data from separate systems.
Read More →
Motive Adds AI Agents for Fleet Operations
New tools automate follow-up on fleet data, from maintenance work orders to driver alerts, with two-way voice conversations planned for later this year.
Read More →Can You Beat Our Trucking Trivia Challenge?
Test your truck knowledge with 19 trivia questions from Heavy Duty Trucking Exchange. Can you keep up with the fleet pros?
Read More →
BeyondTrucks Adds Rules Checks to Dispatch
New Compatibility Engine checks driver qualifications, equipment requirements and fleet policies before loads are dispatched.
Read More →
Diesel Prices Hijack Trucking’s Worry List
ATRI’s annual survey finds cautious optimism about freight, but diesel costs, litigation, and insurance continue to squeeze fleets. Drivers have different priorities on several issues.
Read More →
