US factory output beats forecasts on manufacturing rebound
What's the story
US industrial production exceeded expectations in January, according to the Federal Reserve. The report revealed a 0.7% month-on-month increase in overall industrial output, a significant jump from December's 0.2% rise. This growth rate was much higher than economists' forecast of a 0.3% increase, as per Dow Jones Newswires and The Wall Street Journal surveys.
Sector performance
Manufacturing sector sees significant growth
The manufacturing sector witnessed its largest growth in a decade with a 0.6% increase in output last month. The Federal Reserve noted this increase was "the largest since February 2025, with widespread gains across industry groups." Durable manufacturing also saw an uptick, particularly in computer and electronic products as well as motor vehicles and parts.
Sector analysis
Mixed results in other sectors
Despite the overall growth, some sectors showed mixed results. Mining output fell by 0.2% in January while utilities output rose by a significant 2.1%. The report indicates that businesses are still cautious despite improvements in new orders and production during the month.