Photo: J.D. Pooley/Getty Images
Industrial production was flat in January, missing expectations for a 0.7 per cent gain.Expectations ranged from 0.3 per cent to 1.2 per cent.
Output from utilities dropped 2.5 per cent as unseasonably warm weather caused demand to fall.
The December figure, however, was revised up to 1.0 per cent growth from just 0.4 per cent.
From the Federal Reserve’s release:
Industrial production was unchanged in January, as a gain of 0.7 per cent in manufacturing was offset by declines in mining and utilities. Within manufacturing, the index for motor vehicles and parts jumped 6.8 per cent and the index for other manufacturing industries increased 0.3 per cent. The output of utilities fell 2.5 per cent, as demand for heating was held down by temperatures that moved further above seasonal norms; the output of mines declined 1.8 per cent. Total industrial production is now reported to have advanced 1.0 per cent in December; the initial estimate had been an increase of 0.4 per cent. This large upward revision reflected higher output for many manufacturing and mining industries. At 95.9 per cent of its 2007 average, total industrial production in January was 3.4 per cent above its level of a year earlier. The capacity utilization rate for total industry decreased to 78.5 per cent, a rate 1.8 percentage points below its long-run (1972–2011) average.
Photo: Federal Reserve