US Industrial Output Falls Unexpectedly In January

US industrial production fell by 0.3 percent month-over-month in January 2017, following a downwardly revised 0.6 percent rise in the previous month and worse than market expectations of a 0.1 percent gain. Utilities output dropped sharply by 5.7 percent due to unseasonably warm weather while manufacturing production grew 0.2 percent, matching analysts' forecasts, and mining output rose 2.8 percent.

Utilities output contracted by 5.7 percent, following an upwardly revised 5.1 percent growth in the previous month, largely because unseasonably warm weather reduced the demand for heating. 

By contrast, manufacturing production moved up 0.2 percent, the same as in December and in line with expectations; and mining output jumped 2.8 percent after falling by 1.4 percent in the previous month.

Compared to the same month of 2016, industrial output showed no growth, as a sharp drop in utilities output (-2.6 percent) offset an increase in both manufacturing (0.3 percent) and mining (0.4 percent).

Capacity utilization for the industrial sector fell 0.3 percentage point in January to 75.3 percent, a rate that is 4.6 percentage points below its long-run (1972-2016) average.

US Industrial Output Falls Unexpectedly In January

Federal Reserve | Joana Ferreira |
2/15/2017 2:31:54 PM