U.S. industrial production beat expectations to increase slightly in December, fueled by growth in manufacturing and mining, the Federal Reserve said Wednesday.
Production rose by 0.1% in December, up slightly from November, when revised figures now indicate no growth, the U.S. central bank announced in a statement.
The December figure was above the market expectations of a slight contraction, according to Briefing.com.
The increase was attributable to a rise in manufacturing and mining, which acted to counteract a sharp drop in the output of utilities.
"The small gain in manufacturing output is largely due to a 1.6% increase in auto production," Pantheon Macroeconomics Senior U.S. Economist Kieran Clancy wrote in a note to clients.
He said the increase in auto production came after the end of a major auto workers strike at Ford, General Motors and Stellantis in late October, adding that production remained "still slightly below its pre-strike trend."
"The upshot is that manufacturing remains in rough shape, and we see few signs of a material improvement ahead," he said.
On an annual basis, industrial production expanded by 1.0% in the year to December 2023, boosted by mining and manufacturing, the Fed said.
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