US industrial production rises more than expected

US industrial production rose more than expected in January, according to data released by the Federal Reserve.

Industrial output increased a seasonally-adjusted 0.9% last month compared with a downwardly-revised 0.7% drop in December and beating economists’ expectations for a 0.4% gain.

The Fed said stormy weather late in January likely held down production a little. However, the utilities index jumped 5.4%, with demand for heating up markedly following unseasonably warm weather in December.

Manufacturing output, which makes up nearly three quarters of overall industrial output, rose 0.5% in January and was 1.2% above its year-earlier level.

Pantheon Macroeconomics said: “The core story here is that talk of a manufacturing recession, or even a manufacturing-led recession in the whole economy, doesn't make much sense. The trend in manufacturing output remains weak, but the sector is expanding.”