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The numbers: Industrial production slipped 0.1% in December, the Federal Reserve reported Friday.
The decline was below Wall Street expectations of a 0.2% gain, according to a survey by The Wall Street Journal.
Capacity utilization inched lower to 76.5% in December from 76.6% 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% rate.
Key details: Auto production sank 1.3% in December and was about 6% lower for the year. Total manufacturing declined 0.3%.
Utility output fell 1.5% on the relatively warm weather for the month. Mining, which includes oil and gas production, rose 2%.
Big picture: Manufacturing remains a bright spot in the economy. For the fourth quarter as a whole, total industrial production is up 4%. For the year, industrial production is up 3.7%.
The decline in auto production was a surprise to many economists who had expected output to ramp up due to lean inventories.
Market reaction: U.S. stocks
DJIA,
SPX,
opened lower Friday on concerns about relatively hawkish comments from Fed officials this week.
