Factory Production Sees Biggest Drop Since 2009
Factory production in the United States fell in January by the most since May 2009 as winter weather slowed the economy, the Federal Reserve said.
Production fell 0.8% in January after a December decline of 0.3% that was larger than originally reported. Overall industrial production fell 0.3%, the largest drop since April 2013.
Economists surveyed by Bloomberg News expected a 0.1% decline in factory production.
“Our assumption is that this is a temporary soft patch,” Guy Berger, a U.S. economist at RBS Securities Inc., told Bloomberg. “You’ve had pretty moderate growth in manufacturing, and I think in all likelihood that’s what’s going to repeat in 2014. It’s important not to overreact to the weakness that you’re seeing now.”
The cold weather helped utility output to increase 4.1%, the most since March 2013. Mining production fell 0.9%, the most in three months.
