Washington, DC, March 16, 2007--Industrial output rebounded in February, led by higher utility output because of colder-than-average temperatures.
Industrial output rose 1.0% last month, marking the biggest gain since November 2005. Capacity utilization rose to 82.0%, the highest level since September, the Federal Reserve reported Friday.
All major industry groups except construction supplies recorded production gains in the month.
The increase in February's output was above forecasts. Economists had expected a 0.6% increase, with capacity utilization pegged to have risen to 81.5%.
On Wall Street, the rebound in industrial output helped stocks bounce off early lows.
But economists had been looking for the rebound because of cold weather that gripped much of the nation in February. In addition, the Institute for Supply Management factory index improved in the month.
Industrial production is up 2.3% in the past 12 months
Even the drop in January wasn't as bad as first reported. Production fell 0.3% in January, revised from a 0.5% decline reported previously. Capacity was at 81.4% in January, revised up from 81.2% earlier.
Utilities hit on all cylinders
In February, utility output surged 6.7% and is up 9.6% over the past 12 months. This was the largest monthly gain in utility output since December 1989.
Manufacturing output increased 0.4%. Motor vehicles and parts climbed 3.1% in February, a reversal after falling 5.8% in the previous month.
Excluding motor vehicles and parts, industrial production was up 0.8% in February after falling 0.4% in the previous month.
Output at mines increased 0.1% in February. Mining output rose 3.0% from year-ago levels.
Output of high-technology goods increased 3.2% in February, following on a 2.1% gain in January.
Production of business equipment rose 0.4% in February, an improvement after falling 2.1% in the previous month.
The output of consumer goods rose 1.5% after remaining flat in January.
