**MNI DATA IMPACT: US April IP Soft -0.5% On Utilities, Mfg>

By Kevin Kastner

     WASHINGTON (MNI) - April industrial production fell by 0.5%, led by 

a large reversal in utilities production. There was another decline in 

manufacturing production and a rebound in mining production. 

     Here are some of the key takeaways from the data released 

Wednesday: 

     - April industrial production was well below the flat reading 

expected by both the Bloomberg and MNI surveys. March industrial 

production was revised up to a 0.2% gain from the previously announced 

0.1% decline, while February production was revised down sharply to a 

0.5% decline from 0.1% gain previous reported. 

     - Capacity utilization fell to 77.9% from a downward revised 78.5% 

in March. The Bloomberg and MNI surveys had expected a reading of 78.7% 

in April. 

     - Utilities production fell by 3.5% in April after three straight 

gains, with electricity production down 2.6% and natural gas production 

down 7.7%. The Federal Reserve noted that temperatures were 

warmer-than-normal in April cutting into heating needs, as suggested by 

an MNI preview analysis on Tuesday. 

     - Manufacturing production fell by 0.5% in April, with vehicle 

production down 2.6%. Excluding that large decline, manufacturing 

production would have been down 0.3% and overall industrial production 

would have been down 0.4%. Manufacturing production has not posted a 

monthly gain since December. 

     - Mining production rebounded by 1.6% in April after declines in 

each of the previous three months. The rebound came despite falling rig 

counts, suggesting refining drove the April increase. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]