Posted: Feb 14, 2014 7:19 AM
Updated: Feb 14, 2014 7:20 AM
WASHINGTON (AP) Harsh winter weather led to a steep drop in U.S. factory output in January. Manufacturers made fewer cars and trucks, appliances, furniture and carpeting, as the recent cold spell ended five straight months of increased production
The Federal Reserve says factory production plunged 0.8 percent in December, reversing gains of 0.3 percent in both December and November. Automakers lost days of production because of snowstorms, as their production plummeted 5.1 percent.
Overall industrial production, which includes manufacturing, mining and utilities, fell 0.3 percent in January. Output for utilities rose 4.1 percent last month as the freezing temperatures boosted heating demand.
Factories responded to the weather by running at a lower 76 percent capacity, a 0.7 percentage point drop over the month and 2.7 percentage points below the long-run average.