US manufacturing output rises in January

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US manufacturing output rises in January
17 Feb 2022
5 min read

News Synopsis

Output at US factories rose moderately in January as motor vehicle output fell for a second straight month amid a global shortage of semiconductors. Manufacturing output rose 0.2 percent last month after falling 0.1 percent in December, the Federal Reserve said.Economists have also forecast a 0.3% recovery in factory output. Output increased by 2.5% compared to January 2021. Raw material shortages have also affected other production segments, aside from the auto industry. The manufacturing sector, which accounts for 11.9% of the US economy, remains supported by inventories that are still lean at businesses as commodity demand remains strong. Output at auto plants fell 0.9 percent last month after falling 0.4 percent in December. Excluding motor vehicles, production rose 0.3 percent in January. Overall capacity use for the industrial sector rose 1.0% point to 77.6% last month, which is 1.9 points below the average. Officials who look at the capacity at the FED used measures for signals of how much slack remains in the economy.

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