Industrial Production Falls in January

Washington, DC, February 15, 2007--Industrial production fell by the largest amount since Hurricane Katrina, the Federal Reserve reported Thursday.

Industrial output fell 0.5% in January. This is the fourth decline in the past five months. Capacity utilization fell to 81.2% in January from 81.8% in December. This is the lowest level since last February. 

Economists were expecting production to fall 0.1% and capacity utilization to fall to 81.6%. Production in December rose 0.5%, up slightly from the initial estimate of a 0.4% gain. Production is up 2.6% in the past 12 months. 

Manufacturing output fell 0.7% in January, as the production of motor vehicles and parts fell 6% . Industrial production, excluding autos, fell 0.2% in January after a 0.5% gain in December.  The decline in industrial output would have been worse without the sharp rise in utility output in January. 

The output of utilities rebounded 2.3% in January after falling 2.7% in December as temperatures grew colder.  All major market groups declined in January. 

The output of consumer goods fell 0.2% after rising 0.1% in December. Business equipment production fell 1.6% in January after a 2.3% rise in the previous month.