The Federal Reserve indicated that industrial production increased 0.9% (3.6% y/y) during December following a 0.1% dip in November, revised from +0.2%. A 0.4% rise had been expected in the Action Economics Forecast Survey. Last month's increase reflected a 5.6% jump in utility output which was boosted by cold temperatures. Factory sector production gained 0.1% (2.3% y/y) after a 0.3% rise. Mining output surged 1.6% (11.5% y/y) following a 0.1% uptick.

The rise in factory sector output reflected a 1.0% increase (1.5% y/y) in consumer goods production, bolstered by a 2.0% strengthening (0.4% y/y) in motor vehicle & parts output. Apparel production gained 0.4% (-8.7% y/y) and paper output rose 0.3% (-1.1% y/y). To the downside, electrical equipment & appliance output fell 0.7% (+3.1% y/y). Business equipment production improved 0.2% (4.2% y/y). Machinery production increased 0.5% (8.3% y/y) but computer & electronic component production eased 0.1% (+2.4% y/y). Chemical production fell 0.7% (+3.2% y/y) and petroleum & related product output was off 0.7% (+2.0% y/y).

Production of materials jumped 1.1% (5.2% y/y) as energy materials production surged 2.7% (8.0% y/y). Durable goods materials improved 0.1% (3.5% y/y) and nondurable goods materials also rose 0.1% (3.0% y/y).

In the special aggregate groupings, production in selected high-technology industries rose 0.4% (3.7% y/y). Nonenergy production excluding high-tech gained 0.2% (2.4% y/y). Factory sector production excluding both high-tech and autos was unchanged (2.5% y/y).

Capacity utilization increased to 77.9%, the highest level since February 2015. Factory sector capacity utilization held steady m/m at 76.4%. Electric & gas utility utilization surged to 80.4%.

Industrial production and capacity data are included in Haver's USECON database, with additional detail in the IP database. The expectations figure is in the AS1REPNA database.