Industrial production increased 0.7 percent last month, according to the Federal Reserve. .The increase, larger than its 0.2 percent rise in December, was driven by a rebound in manufacturing and continued rise in utility demand. Utilities output increased 2.1 percent last month amid unseasonably cold temperatures in the Midwest and a significant winter storm in the South and East Coast. Manufacturing output increased 0.6 percent, its largest rise in 11 months, while the index for mining dropped 0.2 percent. Durable manufacturing output increased 0.8 percent, with increases in nearly all industries. Nondurable manufacturing output increased 0.4 percent amid gains in the production of several categories — paper, printing and support, chemicals and plastics and rubber — outweighing declines in other areas. Mining output dropped 0.2 percent amid weak demand, increasing operating costs and logistical challenges. The decrease followed a nearly 1 percent drop in December. The operating rate for mining only fell 0.1 percentage point to 84.4 percent, and the utilities operating rate increased 1.3 percentage points to 72.9 percent. Manufacturing capacity utilization increased 0.4 percent to 75.6 percent, which is 2.6 percentage points under its long-term average. Business equipment production increased nearly 1 percent, with gains in all market categories. Nonindustrial supplies output also increased 0.9 percent amid strong numbers from both business and construction supplies. Materials production increased 0.6 percent.
