U.S. Industrial Production Unexpectedly Edges Slightly Lower In January

Industrial production in the U.S. unexpectedly edged slightly lower in the month of January, according to a report released by the Federal Reserve on Thursday.The Fed said industrial production sli...

RTT Staff Writer•Friday, February 16, 2024•1 min read

Industrial production in the U.S. unexpectedly edged slightly lower in the month of January, according to a report released by the Federal Reserve on Thursday.

The Fed said industrial production slipped by 0.1 percent in January compared to economist estimates for a 0.3 percent increase.

Revised data also showed industrial production was unchanged in December compared to the previously reported 0.1 percent uptick.

The unexpected dip in production in January came as manufacturing output fell by 0.5 percent and mining output tumbled by 2.3 percent, with winter weather contributing to the declines in both sectors.

Meanwhile, the Fed said utilities output soared by 6.0 percent, as demand for heating surged following a move from unusually mild temperatures in December to unusually cold temperatures in January.

The report also said capacity utilization in the industrial sector dipped to 78.5 percent in January from an upwardly revised 78.7 percent in December.

Economists had expected capacity utilization to rise to 78.8 percent from the 78.6 percent originally reported for the previous month.

Capacity utilization in the manufacturing and mining sectors fell to 76.6 percent and 92.2 percent, respectively, while capacity utilization in the utilities sector jumped to 74.2 percent.