Industrial production in February grew at the fastest monthly rate in six months, bouncing back after a weather-addled start to the year.
The Federal Reserve said Monday that industrial production grew 0.6% in February, topping the MarketWatch-compiled economist consensus for 0.2% growth.
In addition, January’s decline was revised to a 0.2% fall from an initially reported 0.3% drop, though there were changes to November and December’s numbers as well.
“U.S. industrial production rebounded nicely in February, doubling our already above-consensus call, and doing so without the help of a further rise in utilities output,” said Avery Shenfield of CIBC World Markets.
The gain in February came as manufacturing output grew 0.8% and as mining output grew 0.3%, while utilities output eased 0.2% after a 3.8% surge in January. Capacity utilization rose to 78.8% from 78.5%.
Compared to a year ago, production was up 2.8%.
The data reinforces the notion that the unusually severe winter weather was the factor knocking economic output earlier in the year. For instance, automotive production leapt 4.6% after a 5.1% nosedive in January.
Separately, the New York Fed reported that the Empire State’s general conditions indexrose to 5.6 in March from 4.5 in February.
Source: Marketwatch
