U.S. industrial output rises 0.8% as utilities surge

U.S. industrial production rebounded in December due to the biggest jump in utilities since 1989 as temperatures cooled across the country.

The Federal Reserve said on Wednesday industrial output rose 0.8 % last month after a downwardly revised 0.7 % decline in November.

Economists polled by Reuters had forecast industrial production rising 0.6 %. The U.S. central bank's measure of the industrial sector comprises manufacturing, mining, and electric and gas utilities.

Overall industrial production, however, fell at an annual rate of 0.6 % in the fourth quarter.

The bulk of December's increase was due to the 6.6 % rise in the utilities index, which had been hampered the previous month by unseasonably warm weather.

Manufacturing output edged up 0.2 % and mining production was unchanged.

Overall manufacturing output rose at an annual rate of 0.7 % in the fourth quarter while the index for mining surged 11.9 % in the quarter.

With overall output increasing in December, the percentage of industrial capacity in use rose 0.6 %age point in December to 75.5 %, from a slightly downwardly revised 74.9 % in November.

Fed officials look to capacity use as a signal for how much further the economy can accelerate before sparking higher inflation.

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