Industrial Production Declines Unexpectedly

Washington, DC, Feb. 16, 2011 -- U.S. industrial production declined unexpectedly, according to a Federal Reserve report.

Industrial production fell 0.1% in January after a 1.2% jump in December, which had been driven by unseasonably cold weather that spiked heating demand.

The drop was the first decline in output since June 2009 and was well below the median forecast for a 0.5% increase.

Manufacturing output, one of the bright spots in the report, grew 0.3% after an upwardly revised 0.9% gain in December.