... the Board of Governors also released the industrial production and capacity utilization statistics for January. Here's the news:
Industrial production was unchanged in January after a gain of 0.7 percent in December. At 117.7 percent of its 1997 average, overall industrial output in January was 3.9 percent above its January 2004 level. The rate of capacity utilization for total industry edged down 0.1 percentage point, to 79.0 percent, in January, a rate 2 percentage points below its 1972-2004 average of 81.0 percent. Manufacturing production rose 0.4 percent after a similarly sized increase in December; the gain in December has been revised down 0.3 percentage point. The output of utilities dropped 3.0 percent in January, as temperatures were relatively warm, and mining output decreased 0.3 percent.
No one seemed all that upset. From Reuters:
While the flat industrial production result undershot Wall Street forecasts for a 0.3 percent rise, analysts said underlying strength in manufacturing signaled more interest rate tightening may lie ahead.
"There are some signs that slack in the economy is rapidly disappearing," said Chris Rupkey, senior financial economist at the Bank of Tokyo/Mitsubishi in New York.
"The risks are really growing day by day that the Fed this year will transition from engineering a neutral Fed policy to a slightly restrictive monetary policy," Rupkey said.