US Industrial Output Rises The Most In Over 2 Years

Industrial production in the United States grew by 0.8 percent month-over-month in December 2016, following an upwardly revised 0.7 percent fall in November and better than market expectations of a 0.6 percent rise. It was the largest gain since November 2014, as utility output jumped 6.6 percent, its sharpest increase since December 1989.
Federal Reserve | Joana Ferreira | 1/18/2017 2:34:38 PM
Utilities output rebounded 6.6 percent, following an upwardly revised 4.6 percent contraction in the previous month, largely because of a return to more normal temperatures following unseasonably warm weather in November; the gain last month was the largest since December 1989. Also, manufacturing output expanded 0.2 percent, after falling by 0.1 percent in November but missing market consensus of a 0.4 percent increase.

Meanwhile, mining production showed no growth, after falling by a revised 0.7 percent in November. 

Compared to the same month of 2015, industrial output grew by 0.5 percent, boosted by utilities (+6.2 percent) and manufacturing (+0.2 percent) while mining fell (-2.8 percent).

Industrial production, however, fell 0.6 percent in the fourth quarter compared with the same period of 2015.

Capacity utilization for the industrial sector increased 0.6 percentage point in December to 75.5 percent, a rate that was 4.5 percentage points below its long-run (1972–2015) average.

US Industrial Output Rises The Most In Over 2 Years