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Industrial output up 0.2%
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January 15, 1999: 10:40 a.m. ET
December gain sparked by rise in utility output; capacity utilization off
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NEW YORK (CNNfn) - Industrial production increased 0.2 percent in December, sparked by a 1.6 percent increase by utilities, the Federal Reserve Board reported Friday.
At the same time, U.S. industry operated at its slowest rate in five years.
Manufacturing output marked its third month of consecutive gains. At 132.8 percent of its 1992 average, industrial production in December was 1.9 percent higher than in December 1997.
Industrial production rose at an annual rate of 3.2 percent in the fourth quarter after having increase 0.9 percent rate in the third quarter. The gain was notable in manufacturing, where the pace picked up from a 0.4 annual rate in the third quarter to 5.1 percent in the fourth quarter.
Part of the acceleration reflected a rebound in motor vehicle assemblies after strikes had limited output in the second and third quarters.
However, the Fed said, the output of other manufacturing industries increased at an annual rate of 3.3 percent in the fourth quarter after little change in the third quarter. Utility output fell 12.5 percent at an annual rate in the fourth quarter because of the unusually mild weather.
Factories, mines and utilities ran at 80.9 percent of their maximum capacity in December, the lowest rate since August 1993's 80.6 percent.
The industrial operating rate declined 2-1/2 percent during 1998 to a level more than 1 percent below its 1967-97 average.
The benchmark 30-year Treasury bond was down 24/32 for a yield of 5.100 percent. 
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Federal Reserve Board
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