Industrial production increased 0.5% in January after moving up 1.0% in December. In January, gains in the output of aircraft and parts contributed 0.2 percentage point to total IP growth following the earlier resolution of a work stoppage at a major aircraft manufacturer. Manufacturing output declined 0.1% in January, held down by a 5.2% decrease in the index for motor vehicles and parts. The index for mining fell 1.2%, while the index for utilities jumped 7.2%, as cold temperatures boosted the demand for heating. At 103.5% of its 2017 average, total IP in January was 2.0% above its year-earlier level. Capacity utilization stepped up to 77.8%, a rate that is 1.8 percentage points below its long-run (1972–2024) average.
The majority of market groups posted gains in January. The output of consumer goods increased 0.8%, as a rise in the production of nondurable consumer goods outweighed a decline in the production of durable consumer goods. The increase in nondurables was supported by gains in the indexes for energy and chemical products. The index for business equipment grew 2.1%, reflecting a strong increase in the production of civilian aircraft. Construction supplies posted a decline of 0.2%, and business supplies posted a gain of 0.6%. The index for materials rose 0.1%, with declines in several non-energy categories offset by gains in energy materials.
Manufacturing output fell 0.1% in January. The durable manufacturing index remained unchanged from December, with large increases in aerospace and miscellaneous transportation equipment offsetting declines in motor vehicles and parts. The nondurable manufacturing index decreased 0.3% in January, with decreases in four categories (food, beverage, and tobacco products; printing and support; petroleum and coal products; and plastics and rubber products). The index for other manufacturing (publishing and logging) rose 0.3%.
Mining output fell 1.2% in January after moving up 2.0% in December. In January, the output of utilities jumped 7.2% as the output for electric and natural gas utilities increased 6.1% and 15.4%, respectively.
Capacity utilization for manufacturing decreased 0.1 percentage point in January to 76.3%, a rate that is 1.9 percentage points below its long-run (1972–2024) average. The operating rate for mining decreased 1.1 percentage points to 89.5%, and the operating rate for utilities moved up 4.9 percentage points to 75.7%. The rate for mining was 3.0 percentage points above its long-run average, while the rate for utilities remained well below its long-run average.
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