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The numbers: U.S. industrial production rose 0.5% in February, the Federal Reserve reported Thursday.
The gain was in line with Wall Street expectations, according to a survey by The Wall Street Journal.
Capacity utilization rose to 77.6% in February from a revised 77.3% in the prior month. The capacity utilization rate reflects the limits to operating the nation’s factories, mines and utilities.
Economists had forecast a 77.8% rate.
Key details: Manufacturing had a strong gain in February, rising 1.2% after two months of weakness.
Most industry groups showed gains with the exception of motor vehicles and parts, which fell 3.5% due to continued shortage of electronic components. Excluding autos, total industrial output increased 0.7%.
Utilities output slumped 2.7% in February after a strong gain in January. Mining output, which includes oil and natural gas, rose 0.1% after a 1.3% gain in the prior month.
Big picture: Manufacturing has continued to be a bright spot in the economy, even as the sector grapples with supply-chain woes in the wake of the pandemic.
Market reaction: U.S. stocks
DJIA,
SPX,
were set to open lower after the Fed laid out projections for steady interest rate increases this year.
