Warm weather slows US industrial output in Dec

Unseasonably warm weather in December held down Americans’ use of gas and electricity, weighing on US industrial production for the month, the Federal Reserve reported Friday.

But otherwise the industrial sector hummed along at the close of 2018, with manufacturing hitting a 10-month high while oil and gas drilling also rose.

Economists have warned that US manufacturing may have peaked but December’s numbers, which are subject to revision, suggested a

slowdown may not have begun yet.

The Fed’s industrial production index rose 0.3 per cent, a tenth of a point slower than November but faster than the 0.2 per cent economists had been expecting.

Manufacturing output jumped 1.1 percent, the biggest gain since February, driven higher by the key auto sector, which accelerated by 4.7 per cent.

Mining activity — mainly oil and gas drilling — was up 1.5 per cent, which helped offset the sharp 6.3 per cent decline utilities.

Production in 2018 rose four per cent compared to the prior year, while manufacturing posted a 3.2 per cent increase.

Industrial capacity in use rose to 78.7 per cent last month, two tenths above the consensus forecast but still below the long-run average.

 

Warm weather slows US industrial output in Dec

Unseasonably warm weather in December held down Americans use of gas and electricity, weighing on US industrial production for the month, the Federal Reserve reported Friday. But otherwise the industrial sector hummed along at the close of 2018, with manufacturing hitting a 10-month high while oil and gas drilling also rose. Economists have warned that US manufacturing may have peaked but Decembers numbers, which are subject to revision, suggested a slowdown may not have begun yet. The Feds industrial production index rose 0.3 per cent, a tenth of a point slower than November but faster than the 0.2 per cent economists had been expecting. Manufacturing output jumped 1.1 percent, the biggest gain since February, driven higher by the key auto sector, which accelerated by 4.7 per cent. Mining activity mainly oil and gas drilling was up 1.5 per cent, which helped offset the sharp 6.3 per cent decline utilities. Production in 2018 rose four per cent compared to the prior year, while manufacturing posted a 3.2 per cent increase. Industrial capacity in use rose to 78.7 per cent last month, two tenths above the consensus forecast but still below the long-run average.