WASHINGTON-The Federal Reserve has reported that overall U.S. industrial production rose a strong 0.6 percent in March, capping a strong first quarter. However, David Huether, chief economist with the National Association of Manufacturers, warns that activity may cool off as the year progresses.
"With manufacturing production having surged at a 9.5 percent annual growth rate in the fourth quarter, we've clearly seen a turnaround from the first half of 2005 when we were averaging less than 2 percent growth," Huether says. "But, with gasoline prices on the rise again, consumer spending should moderate in the second quarter."