US industrial production rises 0.5% in January, exceeding estimates

ANKARA

US industrial production rose 0.5% in January, surpassing market expectations, according to Federal Reserve data released Friday.

Analysts had expected a 0.3% increase, following a stronger 1% gain in December.

The growth was partly driven by a 0.2 percentage point rise from aircraft and parts production, which rebounded after a major manufacturer resolved a work stoppage, the Fed said.

However, manufacturing output slipped by 0.1% month-on-month, weighed down by a significant 5.2% drop in motor vehicles and parts production. Meanwhile, the mining sector saw a decline of 1.2%.

Capacity utilization, which indicates overall growth and demand in the economy, edged up to 77.8% in January.

On an annual basis, industrial output grew 2% last month.