U.S. industrial production rose a less-than-expected 0.3 percent in February but a climb in capacity utilization to 79.4 percent was greater than analysts’ estimates, a government report showed on Wednesday.
Analysts were expecting production at U.S. factories, mines and utilities last month to rise 0.4 percent. January’s output gain was revised to 0.1 percent from an unchanged reading, the Federal Reserve said.
Capacity utilization surpassed analysts’ expectation of a 79.2 percent showing. January’s reading was revised to 79.2 percent from a previously reported 79.0 percent.
A 1.1 percent drop in output at utilities dampened overall production. The Fed said the January decline in utility production — which was revised to a fall of 2.8 percent from a 3.0 percent drop — was due to warm weather limiting demand for heat.
The index for consumer durable goods output rose 3.6 percent and was boosted by a surge in the output of automotive products and a jump in the output of home electronics, the Fed said.
Manufacturing production rose 0.5 percent in the month, and the factory operating rate advanced to 78.5 percent, the highest rate since November 2000. However, factory capacity utilization was still 1.3 percentage points below its 1972-2004 average, the Fed said.
Production of durable goods increased on a 5 percent jump in the output of motor vehicles and parts.
