WASHINGTON - The Federal Reserve announced today an unexpected increase in U.S. industrial production for December, marking a slight but notable rise of 0.1%. This modest gain came as a surprise to economists who had anticipated no change for the month. The uptick was driven by improvements in both the mining and manufacturing sectors.
Mining output experienced a significant rebound, rising by 0.9%, while manufacturing output saw a marginal increase of 0.1%. A contributing factor to the manufacturing sector's growth was the auto industry's recovery, which followed a United Auto Workers union strike. Auto production specifically surged by 1.6%, indicating a robust turnaround for this industry segment.
Despite the overall positive movement in industrial production, the utility sector faced a decline, which was attributed to warmer-than-average weather conditions that reduced the demand for heating.
Additionally, industrial capacity utilization held steady at 78.6% in December, maintaining the same level as previously reported. Notably, mining capacity utilization reached a high of 93.8%, signaling strong performance in that sector.
On an annual basis, the industrial production witnessed an increase of 1% for the year leading up to December 2023, reflecting a gradual improvement in the industrial landscape of the United States.
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