2018.01.1723:21:00UTC+00US Industrial Output Grows in December

U.S. industrial production rose more than expected in December as unseasonably cold weather for the month lifted demand for heating. However, manufacturing output barely increased, which indicates moderate growth in the industrial sector.

Industrial output — which measures output at factories, mines and utilities — increased 0.9 percent in December, according to data from the Federal Reserve. It's a strong rebound from November, the reading for which was revised lower from the previous 0.2 percent gain to an 0.1 percent contraction.

According to the Federal Reserve, manufacturing output edged up 0.1 percent from the previous month for its fourth consecutive monthly gain, while mining output advanced 1.6 percent — with oil and gas extraction on the rise — and utilities output bouncing 5.6 percent higher month-on-month.

Overall, in the final quarter of 2017, US industrial output continued to advance — an 8.2 percent annual rate — after brushing off the after-effects of Hurricanes Harvey and Irma in the third quarter.

According to the data — the overall industrial production index's 3.6 percent rise from December 2016 was the largest calendar-year gain since 2010.

The industrial sector is being supported by a strengthening global economy and recent dollar weakness, which is helping to make U.S. exports more competitive relative to those of the nation's main trading partners.