Industrial production increased last month

Industrial production increased a half–percent last month amid gains in the output of parts and aircraft, according to the Federal Reserve. The increase followed a 1 percent rise in December..A 5.2 percent drop in the index for motor vehicles and parts sparked a 0.1 percent decline in manufacturing output. The index for mining dropped 1.2 percent, while cold temperatures spurred heating demand, causing the utilities index to rise 7.2 percent. The nondurable manufacturing index fell 0.3 percent last month, with decreases in multiple categories. The index for publishing and logging manufacturing increased 0.3 percent. .The output of consumer goods rose 0.8 percent. A rise in the production of nondurable consumer goods — supported by increases in the indexes for chemical and energy products — outweighed a drop in the production of durable consumer goods. .At 103.5 percent of its 2017 average, total industrial production was 2 percent higher than its year-earlier mark in January. Capacity utilization increased to 77.8 percent, which is still 1.8 percentage points under its 52-year average. Capacity utilization for manufacturing dropped 0.1 percentage point to 76.3 percent, which is 1.9 percentage points below its 52-year average. .The mining operating rate fell 1.1 percentage points to 89.5 percent, while the utilities operating rate increased 4.9 percentage points to 75.7 percent, which is 3.0 percentage points higher than its long-term average. .The business equipment index increased 2.1 percent amid a substantial rise in civilian aircraft production. Construction supplies fell 0.2 percent, while business supplies increased 0.6 percent. The materials index slightly increased, with drops in multiple non-energy categories being offset by a rise in energy materials..According to the Federal Reserve, total industrial capacity will rise 1.5 percent this year, higher than the 1.2 percent rise in 2024. Manufacturing capacity is slated to increase 1.2 percent, after a 1.3 percent rise in 2024. Capacity for electric and natural gas utilities is projected to increase 3.7 percent following a 3.6 percent rise in 2024.