**MNI DATA IMPACT: US February IP Rises 0.1%>

--February Capacity Utilization At 78.2%

--Small IP Gain Due To Manufacturing Weakness; Strength In Utilities

By Harrison Clarke and Shikha Dave

     WASHINGTON (MNI) - The February industrial production data was 

weaker than expected, with a decline in manufacturing being the biggest 

factor. Capacity utilization fell to 78.2% in February. 

     The following are the key points from the Industrial Production and 

Capacity Utilization data for February released by the Federal Reserve 

Friday: 

     - Industrial production increased by 0.1% in February, below the 

0.4% gain expected by an MNI survey and the Bloomberg consensus, due in 

large part to weakness in manufacturing, offset by gains in utilities.  

     - Manufacturing production fell 0.4% in the month on general 

declines in most categories, led by nonmetallic minerals and petroleum 

and coal products. Motor vehicles production was down 0.1%. Outside of 

motor vehicles and parts, manufacturing production would still have been 

down 0.4%.  

     - Utilities production rose 3.7% following January's 0.9% decline, 

as temperatures reached unusually cool levels in February. The February 

mix showed a 4.1% increase in electricity production, and a 1.5% gain 

in natural gas as people turned up the heat. 

     - Mining production posted an increase of 0.3% in February, 

following a 0.3% gain in January, maintaining the string of increases, 

but suggesting some slowdown in growth due to falling energy prices. 

     - Capacity utilization came in at 78.2%, below the 78.5% expected 

expected by MNI and Bloomberg consensus, following a 78.3% reading for 

January. Manufacturing capacity utilization fell to 75.4% from 75.8% in 

January, showing a great deal of slack in production capability. 

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

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