US manufacturing output posts biggest gain in 11 months in January

Core Insights - U.S. factory production saw a significant increase of 0.6% in January, marking the largest gain in 11 months, following a stagnant December [1][2] - The manufacturing sector, which constitutes 10.1% of the economy, experienced a year-over-year production increase of 2.4% in January [2] - The rise in factory output was broad-based, with durable goods manufacturing output rising by 0.8% and nondurable goods output increasing by 0.4% [4] Manufacturing Sector Performance - Economists had anticipated a production increase of 0.4%, while December's output was revised to a 0.2% rise [2] - Durable goods categories such as machinery, computer and electronic products, and motor vehicles saw notable gains, with motor vehicles and parts rising for the first time since August [4] - Nondurable goods production was bolstered by increases in paper, chemicals, and rubber products [4] Industrial Production Overview - Overall industrial production advanced by 0.7% in January, following a 0.2% increase in December, with a year-over-year growth of 2.3% [5] - Mining output decreased by 0.2%, while utilities production increased by 2.1% due to cold weather conditions [5] Capacity Utilization - Capacity utilization in the industrial sector rose to 76.2% from 75.7% in December, remaining 3.2 percentage points below the long-term average [6] - The operating rate for the manufacturing sector increased to 75.6%, which is 2.6 percentage points below its long-run average [6]