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Posted: 10:31 a.m. Friday, March 15, 2013
WASHINGTON (AP) — A strong increase in auto output boosted U.S. factory production last month, the latest sign that manufacturing is helping drive economic growth after lagging for much of 2012.
Factory output rose a seasonally adjusted 0.8 percent in February from January, after falling 0.3 percent in the previous month, the Federal Reserve said Friday.
The biggest gain was in autos and auto parts, where production increased 3.6 percent after falling 4.9 percent in January. Car sales have risen steadily this year after reaching a five year high in 2012.
Overall industrial production, which includes mining and utilities, rose 0.7 percent in February. That is the most in three months. Utility output jumped 1.6 percent while mining output, which covers oil and gas drilling, fell 0.3 percent, the third straight decline.
The recovery in home construction and increased business investment in machinery and other goods are also boosting output. Production of construction supplies, which includes steel, cement and wood products, rose 1.5 percent. That was the fourth straight solid gain.
Factories also cranked out more industrial machinery, appliances, and furniture.
“Growth has clearly picked up,” Jim O’Sullivan, chief U.S. economist at High Frequency Economics, said in a note to clients. “This is another positive sign” for the economy in the January-March quarter.
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