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Industrial production up in January after drop

Industrial production up in January after drop

Industrial production increased 0.2% in January after decreasing 0.3% in December, the Federal Reserve said this morning. The rates of change in output for September through December all are slightly lower than previously published; even so, production is estimated to have advanced at an annual rate of 4.3%the fourth quarter of last year, the Fed said.635598481867033531-AP-Industrial-Production

January manufacturing output was up 0.2%, and was 5.6% above its year-ago level, the Fed index shows. The mining index declined 1%, more than accounted for by a substantial drop in the index for oil and gas well drilling and related support activities. Falling oil and natural gas prices discouraged drilling. The output of utilities increased 2.3% as cold weather provoked the use of more energy to heat homes and businesses.

At 106.2% of its 2007 average, total industrial production in January was 4.8% above its year-ago level, the report said. Capacity utilization for the industrial sector was unchanged at 79.4%. That rate is 0.7 of a percentage point below its long-run (1972–2014) average, according to the report. Manufacturing output rose 0.2% in January, as the production of durable goods advanced 0.4% percent and the production of nondurable goods was unchanged.

Perhaps surprisingly, given robust auto sales, the categories including motor vehicles and parts and miscellenaous transportation equipment didn’t follow the rising trend of other major durable goods industries.