U.S. Industrial Production Sputtered in January -- Update
February 14 2020 - 1:18PM
Dow Jones News
By Sarah Chaney
U.S. industrial output fell in January, driven down by
unseasonably warm temperatures and a halt in production at Boeing
Co.
Industrial production, a measure of factory, mining and utility
output, decreased a seasonally adjusted 0.3% in January from the
prior month, the Federal Reserve said Friday.
Utility production dropped 4% last month, with electric and
natural-gas utilities falling 3.2% and 7.7%, respectively, as
Americans cut back on their energy consumption during a
warmer-than-usual January.
Boeing's woes also held down industrial output. The aircraft
company halted production of the 737 MAX jet in January, leading to
a 7.4% decrease in aerospace production and a 0.1% decline in
overall manufacturing output last month. For the year through
January, manufacturing production was down 0.8%.
Still, excluding the production of aircraft and parts, factory
output was up 0.3% in January, offering signs of a turnaround after
a weak 2019 for manufacturing production.
"That non-aircraft gain echoes the message from the recent
manufacturing surveys that underlying conditions in the sector are
starting to improve, " said Andrew Hunter, U.S. economist at
Capital Economics, in a note to clients.
The Institute for Supply Management said its index of
manufacturing activity rose 3.1 percentage points to 50.9 in
January from December, indicating a return to growth for the first
time since July. Global manufacturing activity is flashing signs of
stabilization, though the coronavirus outbreak remains a wild
card.
The U.S. is a service-oriented economy, meaning manufacturing
accounts for a small share of overall gross domestic product.
Still, the sector is highly sensitive to swings in global demand,
making it an important indicator of broader economic shifts.
U.S. economic growth expanded at a moderate pace last year.
While consumer spending has been strong, business investment and
trade have been on shaky footing.
Write to Sarah Chaney at sarah.chaney@wsj.com
(END) Dow Jones Newswires
February 14, 2020 13:03 ET (18:03 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Boeing (NYSE:BA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Boeing (NYSE:BA)
Historical Stock Chart
From Jul 2023 to Jul 2024