(MENAFN- Saudi Press Agency) Industrial production at U.S. factories, mines, and utilities rose 0.2 percent in January, rebounding from the previous month, as utility output rose amid colder weather, the government reported Wednesday.
The Federal Reserve (Fed) said factory production, the biggest component of industrial output, rose 0.2 percent last month as manufacturers made more computers, clothing, and metals, offsetting declines in autos and aerospace. Factory production was flat in December
Utility output jumped 2.3 percent as heating demand increased, while mining production fell 1 percent due to a sharp decline in oil and natural-gas drilling, the Fed said. Oil prices have fallen by half since last summer, causing drilling companies to delay digging new wells and limiting energy extraction.
The modest increase in January industrial production suggests manufacturing still is supporting economic growth, though it is weaker than last year. Greater U.S. consumer spending is barely offsetting the impact of weakness overseas. Growth in the euro zone is weak, Japan has just exited recession, and China€„¢s economy is growing more slowly than its recent historical rate.
U.S. exports fell in December, increasing the trade deficit to its widest level in more than two years. Moreover, the rising value of the dollar against other currencies makes U.S. products more expensive abroad, making U.S. manufacturers rely more on domestic demand.
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