Economics

U.S. Factory Output Rises as Firms Navigate Supply Constraints

Manufacturing rose 0.2% in January after drop in prior month
Record utility output gain drove total industrial production

A worker uses a piece of machinery to cut wooden components at a factory in Auburn, Kentucky, U.S.Photographer: Luke Sharrett/Bloomberg

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By Jordan Yadoo

February 16, 2022 at 9:18 AM EST

Updated on

February 16, 2022 at 9:46 AM EST

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Production at U.S. factories rose modestly in January, suggesting manufacturers are gradually working through pandemic-related shortages of materials and labor that hobbled output in the prior month.

The 0.2% increase followed a revised 0.1% decline in December, Federal Reserve data showed Wednesday. Total industrial production, which also includes mining and utility output, jumped 1.4% in January, the most in three months, on a surge in heating demand.