Industrial production in the U.S. increased by slightly more than expected in the month of December, the Federal Reserve revealed in a report on Wednesday, with increased manufacturing and mining output more than offsetting a sharp drop in utilities output.
The report showed that industrial production increased by 0.3 percent in December following a revised 1.0 percent jump in November.
Economists had expected production to edge up by 0.2 percent compared to the 1.1 percent growth originally reported for the previous month.
The increase in industrial production was partly due to a continued increase in manufacturing output, which rose by 0.8 percent in December.
Manufacturing output rose by 1.3 percent in November after falling by 0.9 percent in October, as industries recovered after being negatively affected by Hurricane Sandy.
Paul Ashworth, Chief U.S. Economist at Capital Economics, said, “Overall, despite the downbeat survey evidence, the hard data suggests that the manufacturing sector is just about keeping its head above water.”
The report also showed that mining output increased by 0.6 percent in December following a 0.6 percent increase in November.
On the other hand, utilities output tumbled by 4.8 percent in December, as unseasonably warm weather held down the demand for heating.
The Federal Reserve also said capacity utilization inched up to 78.8 percent in December from an upwardly revised 78.7 percent in November.
The capacity utilization rate had been expected to edge up to 78.5 percent from the 78.4 percent originally reported for the previous month.
Capacity utilization in the manufacturing and mining sectors rose to 77.4 percent and 91.9 percent, respectively, while capacity utilization in the utilities sector fell to 71.8 percent.
by RTT Staff Writer
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