US Industrial Output Growth at 14-Month High

Industrial production in the United States increased 0.9% in January from the previous month, rebounding from falls in the previous three months. The number beat market expectations of a 0.4% gain, boosted by a jump in utilities output and a rebound in manufacturing.

A storm late in the month likely held down production in January by a small amount. 

The index for utilities jumped 5.4 percent; demand for heating moved up markedly after having been suppressed by unseasonably warm weather in December.

Manufacturing output rose 0.5 percent in January, with increases of about 1/2 percent both for nondurables and durables and a small decrease for other manufacturing (publishing and logging). Within nondurables, the largest gains, about 1 percent, were posted by food, beverage, and tobacco products and by chemicals, while the largest decreases, about 2 percent, were recorded by apparel and leather and by printing and support. Results for the major durable goods industries were spread between a drop of 1.3 percent for electrical equipment, appliances, and components and a gain of 2.8 percent for motor vehicles and parts. Within mining, substantial decreases for oil and gas well drilling and servicing, for coal mining, and for nonmetallic mineral mining were offset by increases for oil and gas extraction and for metal ore mining. 

Mining production was unchanged following four months with declines that averaged about 1 1/2 percent per month. 

At 106.8 percent of its 2012 average, total industrial production in January was 0.7 percent below its year-earlier level.

Capacity utilization for the industrial sector increased 0.7 percentage point in January to 77.1 percent, a rate that is 2.9 percentage points below its long-run average.

US Industrial Output Growth at 14-Month High

Federal Reserve | Joana Taborda |
2/17/2016 2:25:01 PM