U.S. Industrial Production Jumps In December As Utilities, Mining Output Surges
(RTTNews) - Industrial production in the U.S. increased by much more than expected in the month of December, according to a report released by the Federal Reserve on Friday.
The Fed said industrial production jumped by 0.9 percent in December after rising by a revised 0.2 percent in November.
Economists had expected industrial production to climb by 0.3 percent compared to the 0.1 percent dip originally reported for the previous month.
The much bigger than expected increase by industrial production partly reflected substantial rebounds by utilities and mining output.
Utilities output surged by 2.1 percent in December after falling by 0.7 percent in November, while mining output jumped by 1.8 percent in December following a 0.5 percent decrease in November.
The report said manufacturing output also climbed by 0.6 percent in December after rising by 0.4 percent in the previous month.
The Fed noted gains in the output of aircraft and parts contributed 0.2 percentage points to total industrial production growth following the resolution of a work stoppage at Boeing (BA).
"December US manufacturing and industrial output data beat expectations and with upward revisions to November and lead surveys pointing to ongoing improvements there might finally be signs of a turn in the sector," said ING Chief International Economist James Knightley.
He added, "Nonetheless, tariffs will present challenges for those with international supply chains and significant export exposure."
The report also said capacity utilization in the industrial sector rose to 77.6 percent in December from an upwardly revised 77.0 percent in November.
Economists had expected capacity utilization to inch up to 77.0 percent from the 76.8 percent originally reported for the previous month.
Capacity utilization in the mining and utilities sectors jumped to 90.8 percent and 71.1 percent, respectively, while capacity utilization in the manufacturing sector rose to 76.6 percent.
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