News & Information
Industrial production increases in January
The industrial production index rose 0.8 percent in January from its December total, according to the Federal Reserve. The December index was revised downward and is now estimated to have been unchanged from the November reading, at 112.9 percent of its 1997 average.
At 113.8 percent of its 1997 average, overall industrial output in January was 2.4 percent above its January 2003 level. The rate of capacity utilization for total industry increased from 75.6 percent in December to 76.2 percent in January.
Manufacturing output increased 0.3 percent in January and was 2.3 percent above its year-ago level. The factory operating rate rose 0.2 percentage point, to 74.6 percent, and was 5.4 percentage points below its 1972-2003 average.
The output of durable goods rose 0.6 percent. The gains among the subsectors included increases of about 1 percent in the output indexes for computer and electronic products, motor vehicles and parts, fabricated metal products, and wood products.
The indexes for the following groups all rose by smaller amounts: nonmetallic mineral products; machinery; electrical equipment, appliances, and components; furniture and related products; and miscellaneous durables.
"The strong growth reported in January 2004 industrial production was primarily in the electric and natural gas utility production," said Daniel J. Meckstroth, chief economist for the Manufacturers Alliance/MAPI. "A cold snap in the weather temporarily boosted utility production and may have depressed manufacturing output."
He added: "The industrial production reports adds to the conflicting and confusing signs recently coming from the manufacturing sector. Confidence and opinion surveys -- MAPI Business Outlook Survey, ISM report, the Fed Beige Book -- point to a strong rebound in manufacturing activity but orders, production, employment data coming from the statistical agencies are showing only a moderate rebound."
