January U.S. industrial production posted a second-straight weak month, according to the Federal Reserve data released Feb. 15.

The Fed’s latest Industrial Production and Capacity Utilization report showed that industrial production ticked down 0.1% in January month-to-month after a flat December. It was the third deceleration month in the past six. December’s figure was revised to flat from a previous +0.1% estimate.

Economists polled by the Wall Street Journal had a consensus January estimate of a 0.2% monthly gain, while those polled by Reuters forecasted no change.

Year-over-year, January’s industrial production was flat.

The report’s January index for manufacturing output fell 0.5% month-to-month and 0.9% year-over-year, following a 0.1% monthly gain in December. The January index for mining sunk 2.3% month-to-month and 1.2% year-over-year. The Fed report noted that winter weather contributed to the declines in both sectors. Meanwhile, the index for utilities jumped 6.0% month-to-month and 9.0% year-over-year.

At 102.6% of its 2017 average, total industrial production in January matched its year-earlier level. Capacity utilization for the industrial sector moved down 0.2 percentage points in January to 78.5%, which was 1.1 points below its long-run (1972–2023) average.

Market Groups

Market groups posted mixed production results in January, with consumer goods up 0.6% month-to-month amid modest gains in durable and nondurable components. The indexes for business equipment (-0.2%), construction supplies (-0.9%) and business supplies (-0.3%) all fell less than 1%.

Meanwhile, Fed Data showed the output of defense and space equipment posted continued solid gorwth in January, up 1.4% month-to-month and up 13% year-over-year. Materials output fell 0.4% month-to-month as the non-energy components fell 0.7% while the energy component ticked up 0.1%.

Industry Groups

Within manufacturing’s 0.5% month-to-month January decrease, the index for durable manufacturing ticked up 0.1% while the nondurable manufacturing fell 1.1%. The index for other manufacturing (publishing and logging) edged down 0.2%. Among durables, the largest gains were in electrical equipment, appliances and components as well as in aerospace and miscellaneous transportation equipment. 

Nonmetallic mineral products and primary metals recorded declines of around 1%. Declines were widespread among nondurables, with notable weather-related decreases in the indexes of petroleum and coal products, chemicals and plastics and rubber products.