US Industrial Production Declines 0.1%

After rising 1.2 percent in December, industrial production in the US declined by 0.1 percent in January. Warmer temperatures reducing the demand for heating was listed as the primary reason for the reduction. Despite the small decline, analysts remain upbeat that the recovery will continue to gain momentum.

“Even in good periods, you get some down months,” Mike Feroli, chief U.S. economist at JPMorgan Securities LLC in New York, said before the report. He was one of three economists in the Bloomberg survey who forecast a decline. “The trend is still quite favorable. Exports are pretty strong and inventories look pretty lean.”

Source: Bloomberg

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