U.S. industrial production slipped 0.1% in January after an upwardly revised 1.2% December increase, initially reported as 0.8%. The latest decline disappointed Consensus expectations for a 0.5% gain. The January figure followed an outsized December increase that was boosted by a 4.1% surge utility output. The return to more normal temperatures lowered output by 1.5% last month and caused the decline in overall industrial production.

Factory sector output rose 0.3% after a 0.8% December surge, which was double the initial estimate. Strength in consumer goods evaporated as indicated by the 0.1% January uptick following a 1.1% December surge. The diminution largely reflected a 0.1% downtick in nondurable goods output (+3.5% y/y) that was led by a 1.0% decline in petroleum (+10.8% y/y) production. Output of durable goods rose a steady 0.7% (8.3% y/y) as machinery production jumped 1.3% (16.5% y/y) with the strength in capital spending. Output of computers & electronic component also rose a firm 0.9% (13.1% y/y) though output of electrical equipment fell 1.1% (+4.5% y/y). Furniture output rose 0.4% (6.8% y/y) but textile production fell 0.4% (+2.6% y/y).

Capacity utilization overall held roughly steady at 76.1%, up sharply from the recession low of 68.2%. In manufacturing alone, utilization ran at 73.7%, up from 73.5% in December and up from the recession low of 65.4%.

Industrial production and capacity data are included in Haver's USECON database, with additional detail in the IP database; that database contains index data at more decimal precision and also includes extensive lists of relative importance figures for several breakdowns of production by industry and market group.