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WASHINGTON: US industrial production inched up 0.1 percent in February, grinding to a near-halt amid severe snow storms that crippled large parts of the East Coast, Federal Reserve data showed on Monday.
The small rise in industrial output came after a revised 0.9 percent January increase, up 0.2 percentage points from the initial reading, and was better than the zero percent reading most analyst expected for February.
"Production was likely held down somewhat by winter storms in the Northeast," the central bank said.
February marked the eighth consecutive rise in output in the sector that is leading the economic recovery from the worst recession in decades.
Manufacturing activity, however, dropped 0.2 percent in February after a 0.9 percent increase in the prior month, with mixed results for its major industries.
Mining output surged to 2.0 percent from 1.1 percent, while utilities production was down 0.1 percentage point at 0.5 percent.
On a 12-month basis, output was up 1.7 percent from February 2009.
"The details of the report do not showcase sustainable economic growth," Briefing.com analysts said in a client note.
The analysts highlighted that typically mining production is cyclical and gains are reversed the next month.
"Without those (mining) gains, total industrial production would have declined 0.1 percent," they said.
Capacity utilisation for all industry rose to a 72.7 percent rate, up 0.2 percentage points and slightly better than expected. But it was still weak compared with the average rate of 80.6 percent from 1972 to 2009.
A separate Fed report showed manufacturing activity in New York state slowed less than expected in March, the eighth consecutive month of growth.
The Empire State Manufacturing Survey index dropped two points to 22.9 following a sharp rise in February.
However, the slowdown was weaker than the 22.0 reading expected by most analysts. A reading above zero indicates growth. - AFP/ls/de
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