Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Economic Watch: Weaker Numbers for Manufacturing, Housing

A measure of industrial production in the U.S. moved higher despite an easing in manufacturing, while the housing market also gave up some recent gains, according to reports issued Tuesday.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
April 18, 2017
Economic Watch: Weaker Numbers for Manufacturing, Housing

 

4 min to read


A measure of industrial production in the U.S. moved higher despite an easing in manufacturing, while the housing market also gave up some recent gains, according to reports issued Tuesday. Both reports follow recent moderate to impressive gains.

Ad Loading...

The total output from the nation’s factories, mines and utilities moved 0.5% higher in March after moving up 0.1% in February, according to the Federal Reserve. The performance was in line with Wall Street expectations.

Ad Loading...

The increase in March was more than accounted for by a jump of 8.6% in the output of utilities, the largest in the history of the index, as the demand for heating returned to seasonal norms after being suppressed by unusually warm weather in February. The production at mines edged up 0.1%.

Manufacturing output, which more directly affects truck freight, fell 0.4% in March, led by a large step-down in the production of motor vehicles and parts. Factory output aside from motor vehicles and parts slipped 0.2%. Despite the decline, manufacturing output in March was up 0.8% from the same time in 2016.

The March drop in factory output followed gains in January and February that are now reported to be smaller than stated earlier. The decline in the manufacturing index in March was its first loss since August 2016, however, factory output increased at an annual rate of 2.7% in the first quarter.

For the first quarter as a whole, industrial production rose at an annual rate of 1.5%.

At 104.1% of its 2012 average, total industrial production in March was 1.5% above its year-earlier level.

Ad Loading...

“A weather-related surge in utility output masks what is otherwise a weak industrial production report for March,” said analysts at Econoday. “Manufacturing… [which] represents the vast core of this report… points to a quarter-end fizzle for a factory sector where unusually strong readings in sentiment reports have not panned out to strength in definitive data like today's report. Hopefully the March weakness will be reversed in force during the spring.”

Analysts at Wells Fargo Securities said while Tuesday'ss industrial production figures and latest PMI readings from the ISM and Empire State Manufacturing Survey suggest some cooling, it still looks for manufacturing output to expand in the coming months.

"The export environment for U.S. producers has improved with a pickup in global growth and relatively stable value of the dollar, at least compared to 2014- 2015, while rising profits and wage pressures should help to revive business investment," said Tim Quinlan, senior economist

New Home Starts Decline as Building Permits Increase

In the housing sector, a Commerce Department report showed homebuilding fell more than expected last month but the number of permits issued for construction moved higher.

Housing starts dropped 6.8% in March from the month before to a annual rate of 1.22 million units, slightly less than Wall Street expectations, while the February level was revised slightly higher. Despite the decline, the March level is 9.2% better than the same time a year ago.

Ad Loading...

Single-family homebuilding, the biggest share of the market, fell 6.2% after hitting a more than nine-year high the month before, while multi-family home starts fell 7.9%.

However, the number of building permits issued, an indicator of future construction, rose 3.6% in March, led by a 13.8% surge in the multi-family sector. The number of permits issued in March jumped 17% from March 2016.

U.S. housing activity continues to trend higher, although as the latest data show, the pattern isn’t always smooth, according to Josh Nye, economist at RBC Economics Research.

“For the first quarter as a whole, starts edged up to a fresh cycle high,” he said. “Other housing data have also improved early this year. Home resales are rising and multi-unit construction spending has increased strongly quarter-to-date – supporting our forecast for a 10% annualized increase in first quarter residential investment.”

Nye said this will provide a key offset to a slowdown in consumer spending that is expected to limit GDP growth to a 1.5% annual rate in the quarter.

Ad Loading...

“While consumers are expected to re-emerge as the main source of growth going forward, residential investment is forecast to continue to make a solid contribution to economic activity, as many of the factors that support consumer spending, particularly strong labour market conditions and buoyant confidence, should also boost demand for housing,” he said.

Nye believes while some choppiness can be expected, housing starts will continue to move higher throughout 2017 to extend the upward trend that has been in place since 2011.

More Fleet Management

Illustration with stacks of money and a shattered car windshield
Fleet Managementby Deborah LockridgeApril 13, 2026

Bill in House Would Raise Minimum Insurance for Motor Carriers to $5 Million

The Fair Compensation for Truck Crash Victims Act would increase insurance requirements for interstate motor carriers by nearly seven times.

Read More →
FTR market report for February 2026.
Fleet Managementby News/Media ReleaseApril 10, 2026

FTR Trucking Conditions Index Hits Four-Year High in February

Strong freight rates push TCI to 10.2, but FTR expects fuel-price volatility to skew March results.

Read More →
C.H. Robinson intermodal.

C.H. Robinson Offers Carriers Relief as Diesel Prices Surge

C.H. Robinson is waiving fees on fuel cards and cash advances for April and May, aiming to help carriers offset rising diesel costs tied to geopolitical instability.

Read More →
Ad Loading...
Fleet Managementby StaffApril 8, 2026

What Trucking Events are Happening in 2026?

Looking for trucking-related conventions, expos, and other events? Heavy Duty Trucking has developed this list of national and larger regional trucking shows and events.

Read More →
Peter Voorhoeve, president, Volvo Trucks North America.
Fleet Managementby Jack RobertsApril 6, 2026

Volvo’s Quiet Confidence Turns into a Full-Throated Bet on the Future

After years of steady, methodical progress, Peter Voorhoeve says the OEM’s latest lineup isn’t just evolutionary. It’s delivering real, measurable gains for fleets right now.

Read More →
Beyond Trucks Rate Agent TMS.
Fleet Managementby Jack RobertsApril 2, 2026

BeyondTrucks Targets Rate Complexity with New AI RateAgents

BeyondTrucks says its new RateAgents can turn plain-language rate logic into working code, starting with fuel surcharges — a critical but notoriously complex piece of carrier revenue.

Read More →
Ad Loading...
Magnus Koeck, vice president of strategy, marketing, and brand management, Volvo Trucks North America
Fleet Managementby Jack RobertsApril 2, 2026

Volvo Sees Market ‘Tipping Point’ as New VNL Orders Surge

Soft freight conditions persist, but aging fleets, strong order intake, and new-product momentum signal a more optimistic second half of 2026, Volvo Trucks North America says.

Read More →
Illustration of a semi-trailer with a sports playbook diagram on chalkboard
Fleet Managementby Deborah LockridgeApril 1, 2026

Cargo Theft’s New Playbook: Strategic Fraud, Double Brokering, and Cybercrime Hit Trucking

Cargo theft is evolving from regional smash-and-grab operations to sophisticated fraud schemes. Strategic theft now accounts for roughly a third of cargo crime, with incidents rising sharply in recent years. Here’s how the schemes work — and what fleets can do to protect themselves.

Read More →
Collage of Top 20 Product award ceremonies
EquipmentMarch 31, 2026

HDT Honors the Best New Products of 2025 at TMC [Photos]

Heavy Duty Trucking's Top 20 Products awards recognize the best new products and technologies. Check out the award presentations at the 2026 Technology & Maintenance Council annual meeting.

Read More →
Ad Loading...
freightliner whitepaper
SponsoredMarch 31, 2026

Detroit Engines: Trusted Performance, Built for What's Next

The Detroit® Gen 6 engine platform proves that real progress doesn’t require a complete redesign. Built on 20 years of trusted technology, these engines are designed for efficiency, stronger performance, and greater reliability than before. And they do it all while complying with 2027 EPA standards on every mile.

Read More →