WASHINGTON (AP) – U.S. factory production edged up last month as manufacturers cranked out more computers, clothing and steel and other metals, offsetting declines in autos and aerospace.
Factory production increased 0.2 percent in January after a flat reading in December, the Federal Reserve said Wednesday. December’s reading was revised down from a 0.3 percent gain. The data suggests manufacturing is still supporting the economy, even though it is growing at a weaker pace than last year.
Strong hiring has given Americans more money to spend, which has boosted demand for cars, electronics and other manufactured goods. That is countering the impact of weak growth overseas, which has dragged down U.S. factories’ exports.
Auto production fell 0.6 percent last month, lowering overall manufacturing output. Auto output has fallen after spiking higher in November. The decline is likely temporary, however, as car sales remain strong. New car sales surged 14 percent in January from a year earlier, according to Autodata.
Overall industrial production, which includes mining and utilities, also increased 0.2 percent in January after slipping 0.3 percent in December. Utility output rose 2.3 percent as heating demand increased. Mining production fell 1 percent due to a huge 10 percent drop in new oil and gas drilling.