The Federal Reserve reported on Thursday that industrial production in the U.S. unexpectedly declined slightly in January. Contrary to economists' predictions of a 0.3% increase, industrial production dipped by 0.1%.
Revisions to the data indicated that there was no change in industrial production in December, contrasting with the previously reported increase of 0.1%.
The unexpected drop in production during January can be attributed to a 0.5% fall in manufacturing output and a 2.3% drop in mining output. The decline in both sectors was influenced by the winter weather.
On the other hand, the Federal Reserve reported a significant 6% increase in utilities output. This surge was attributed to the rise in demand for heating as unusually mild temperatures in December gave way to a cold January.
The report also indicated a slight decrease in the industrial sector's capacity utilization, from a revised 78.7% in December to 78.5% in January. Economists had initially anticipated an increase in capacity utilization from the originally reported 78.6% to 78.8%.
In terms of individual sectors, capacity utilization decreased to 76.6% in manufacturing and 92.2% in mining. However, there was a notable increase in the utilities sector, where capacity utilization rose to 74.2%.
