Manufacturing output increased 0.8 percent in February as firms recovered from severe weather conditions the previous month, according to the Federal Reserve.
The index for mining increased 2.2 percent, after falling nearly 3 percent in January. The index for utilities fell 7.5 percent, as the indexes for natural gas and electric utilities fell 13 percent and 6.5 percent, respectively, amid warmer-than-average temperatures.
Industrial production increased 0.1 percent in February after falling a half-percent in January. Total industrial production in February was at 102.3 percent of its 2017 average, but 0.2 percent under its year-earlier mark.
Durable manufacturing increased 1 percent in February amid rises in wood products, miscellaneous manufacturing and motor vehicles and parts. The index for nondurable manufacturing output rose 0.7 percent, with the largest gains seen in chemicals (1.6 percent), printing and support (1.5 percent) and paper (1.1 percent). The output of publishing and logging manufacturing fell 0.1 percent.
“The output of most major market groups moved up in February,” according to the Federal Reserve. “An exception is the index for consumer goods, which declined 1.4 percent, driven almost entirely by a utilities-related decrease of 8.6 percent in the index for consumer energy.”
The indexes for non-energy durables and nondurables increased 0.9 percent and 0.6 percent, respectively. All materials market groups increased except energy, which fell 0.2 percent. The output of construction supplies and business equipment increased 1.9 percent and 1.7 percent, respectively.
Capacity utilization for the industrial sector remained at 78.3 percent last month, which is 1.3 percent under its average from 1972 to 2023. Capacity utilization for manufacturing increased 0.6 percentage points to 77 percent last month, 1.2 percentage points below its long-term average. The operating rate for mining increased 2.1 percentage points to 93.8 percent, 7.3 percentage points higher than its long-term average. The operating rate for utilities fell 5.7 percentage points to 67.8 percent, significantly below its long-term average of 84.4 percent.