Washington, D.C., March 17, 2006--Industrial production increased 0.7% in February, according to the Federal Reserve.
Capacity utilization in industry--a key gauge of supply-side inflationary pressures--rose to 81.2%, matching the high for this economic expansion. Over the past 33 years, capacity utilization has averaged 81%. Capacity utilization in manufacturing declined to 80.4% from 80.5%.
Economists were expecting production to rise 0.8% after a revised 0.3% decline in January. Capacity utilization was expected to rise to 81.4% from 80.8%.
With auto production falling 0.8%, manufacturing output was flat, the slowest month since September. Technology production rose 2.3%.
Utility output jumped 7.9% in February after plunging 11.5% in the previous month, the warmest January on record.
Mining output fell 0.5%.
Production of consumer goods increased 0.8%, primarily because of utility output. Production of consumer durables increased 0.1%.
Production of business equipment increased 0.1%, as higher production of information technology offset declines in transportation equipment and machinery.
Motor vehicle output fell 0.8% and is now down 2.1% for the past year. Assemblies dropped to 11.43 million seasonally adjusted annual units from 11.78 million in January.
In the past 12 months, industrial production has risen 3.3%. Output in manufacturing is up 4.2%. Industrial capacity has grown 1.8%.
