December Factory Output Slightly Above Expectations
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Output from U.S. factories, mines and utilities rose 0.6 percent in December in spite of a drop in automotive output, boosted by post-hurricane recovery at energy-related industries, a Federal Reserve report showed Tuesday.
The reading outpaced economists' expectations of a climb of 0.5 percent in December output.
Manufacturing production rose 0.2 percent in December even though motor vehicles and parts output fell 2.8 percent. Computer and aerospace production both gained.
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Utilities' production climbed 2.7 percent and output at mines advanced 2.5 percent.
For the fourth quarter as a whole, industrial production increased at an annual rate of 3.8 percent.
In a sign of a manufacturing rebound, closely watched business capacity use rose to 80.7 percent, a level last attained in November 2000.
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Analysts had expected capacity utilization to rise to 80.5 percent.
For all of 2005, capacity use was 80 percent, the highest since 81.8 percent in 2000.