Industrial production in the United States increased 0.7% in January, the best performance in six months.
The Federal Reserve reported on Friday that the total output from the nation’s factories, utilities and mines compared to a drop of 0.4% in December. The report offers a glimmer of hope for a sector that been taking one hit after another beginning with the 2001 recession.
Factory production rose 0.5% in January from December, offsetting a 0.4% fall in December.
Despite the positive news, when motor vehicles production is excluded, growth has been stalled at about a 1.0% annual rate for the last three months after dipping earlier last fall.
“The two strongest sectors in January provided little if any added freight,” said Newport Communications Senior Economist Jim Haughey. “Electronics production was up 0.8% but this was more power in each box and not more boxes. Energy production rose 1.6% but most of this is moved by pipeline and barge.”
He said consumer non-durables, the key freight generator, had a 0.3% gain in January production on top of a 0.5% pickup in December. “Production had fallen a total of 1.0% over the previous three months. However, these gains were mostly offset by declines in industrial machinery and materials.”
Haughey said the January production gain is consistent with earlier strong January reports for employment and retail sales. But he also noted the odds are even that war jitters could cause another brief softening in the economy in the late winter and early spring.
The Federal Reserve reported on Friday that the total output from the nation’s factories, utilities and mines compared to a drop of 0.4% in December. The report offers a glimmer of hope for a sector that been taking one hit after another beginning with the 2001 recession.
Factory production rose 0.5% in January from December, offsetting a 0.4% fall in December.
Despite the positive news, when motor vehicles production is excluded, growth has been stalled at about a 1.0% annual rate for the last three months after dipping earlier last fall.
“The two strongest sectors in January provided little if any added freight,” said Newport Communications Senior Economist Jim Haughey. “Electronics production was up 0.8% but this was more power in each box and not more boxes. Energy production rose 1.6% but most of this is moved by pipeline and barge.”
He said consumer non-durables, the key freight generator, had a 0.3% gain in January production on top of a 0.5% pickup in December. “Production had fallen a total of 1.0% over the previous three months. However, these gains were mostly offset by declines in industrial machinery and materials.”
Haughey said the January production gain is consistent with earlier strong January reports for employment and retail sales. But he also noted the odds are even that war jitters could cause another brief softening in the economy in the late winter and early spring.
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