US industrial production increases on factory, mining output

[WASHINGTON] US industrial production rose modestly in February, lifted by a second month of gains in manufacturing and mining output.

The 0.2 per cent increase in production at factories, mines and utilities followed a 0.7 per cent advance a month earlier, Federal Reserve data showed on Monday (Mar 16). The median estimate in a Bloomberg survey of economists was a 0.1 per cent increase.

Manufacturing output, which accounts for three-fourths of total industrial production, rose 0.2 per cent on a pickup in motor vehicle assemblies. Mining and energy extraction increased 0.8 per cent, while output at utilities fell for the first time in three months.

There have been signs of a nascent recovery in manufacturing and expectations for stronger capital spending this year as trade policy uncertainty lifts and companies take advantage of favourable tax provisions in the One Big Beautiful Bill Act enacted last year. 

At the same time, factory employment has declined nearly every month for the past two years and the sector remains hamstrung by high input costs linked to tariffs. More recently, the war in Iran has driven up energy prices.

In addition to motor vehicles, manufacturing was boosted in February by more output of electrical equipment and computers. Machinery production dropped. The output of materials rose, while consumer goods production was flat.

Separate data out Monday showed that while factory activity in New York state stalled this month, measures of employment and orders growth improved slightly. The report also indicated capital spending expectations were the strongest in more than three years. BLOOMBERG