Industrial Production rises for 7 months in a row, but not always for the same reason
By APWednesday, February 17, 2010
Industrial Production at a glance
Industrial production rose 0.9 percent in January, the Federal Reserve reported Wednesday. It was the seventh consecutive monthly increase.
But this boost meant more to economists than the 0.6 percent rise in December, since manufacturing output rose in January but fell in December. Manufacturing has been helping to lead the economy out of recession.
In December, cold weather gave energy utilities a massive lift, more than offsetting the loss of manufacturing.
The three main categories of industrial production are manufacturing, mining and utilities. Here’s how they contributed to why industrial production rose during each of the past six months:
August 2009: All three categories rose, led by a 2.0 percent increase in mining.
September 2009: Manufacturing and utilities both grew modestly, but mining showed a small drop.
October 2009: Manufacturing dropped slightly and mining was stable, but utilities showed a strong 2.6 percent increase.
November 2009: A 3.0 percent drop in utility output wasn’t enough to erase growth in manufacturing and mining.
December 2009: Small drops in manufacturing and mining couldn’t stifle a 6.3 percent boost in utility output.
January 2010: All three categories gained, for the first time since August 2009. Manufacturing showed the biggest increase, growing 1.0 percent for the month.
