U.S. Industrial Output Sharply Rebounds in 2010

Production was up 5.8% for the year.

As December output increased 0.8%, overall industrial production for 2010 came in at 5.8%, the Federal Reserve reported on Jan. 14.

The December increase followed a 0.3% rise in the industrial production index in November.

In December, output was boosted by a 4.3% rise in energy production "as unusually cold weather boosted the demand for heating," the central bank said.

"Industrial production, led by manufacturing and mining, finished the year on a strong note and is poised to sustain growth in 2011, said Thomas J. Duesterberg, CEO of the Manufacturers Alliance/MAPI. "Expansion in manufacturing was led by information processing equipment, up 14% for the year and 1.8% in December, machinery, up over 15% for the year and over 4% for the final quarter, and plastics, up over 9% for the year and 1.5% in December.

"Looking ahead, improving consumer spending, strong export markets, and the need for capital spending to replace worn out equipment should drive further growth. Some specific areas to look for improved performance in 2011 are: aerospace, where production was down by 0.1% last year, as new and improved large commercial aircraft models go into full production; the auto sector, where stronger consumer spending, attractive new models and an aging car fleet suggest continued growth; and mining and oil and gas equipment, a sector where global demand is accelerating and the United States has a competitive advantage."

Copyright Agence France-Presse, 2011

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