US factories rebound from winter freeze
US INDUSTRIAL output hit a record high in February, official figures showed yesterday.
The upbeat numbers reassured economists that the disappointing figures of recent months were caused by the bad winter weather, rather than any underlying slowdown in the world’s largest economy.
Industrial output increased by 0.6 per cent in February, according to data from the Federal Reserve.
The jump represents the biggest increase in production since August and more than reverses the 0.2 per cent drop in January.
Industrial output is now 1.6 per cent above its 2007 level.
Manufacturing led the month’s rise, increasing 0.8 per cent on the month, though that does not quite overhaul the 0.9 per cent fall in January. Meanwhile mining output rose 0.3 per cent and utilities output fell 0.2 per cent.
“Assuming the weather returns to seasonal norms, there is still scope for economic activity in most sectors to rebound further in the coming months,” said Capital Economics’ Paul Dales. “This makes it even more likely that the Fed will decide to taper its monthly asset purchases further at this week’s policy meeting.”