Zimpapers Logo

Washington. — US industrial output rose at its fastest clip in three and half years in the fourth quarter as factory activity closed out the year on a strong note, a sign of the economy’s brightening prospects. Manufacturing production rose a stronger-than-expected 0,4 percent in December after an out-sized 1,0 percent increase the prior month, a Federal Reserve report on Friday showed.

That helped push overall output at the nation’s factories, mines and utilities up 0,3 percent. Economists polled by Reuters had expected factory output to rise 0,3 percent, while the gain in overall industrial production matched forecasts.

For the fourth quarter as a whole, industrial production advanced at a 6,8 percent pace, the largest quarterly increase since the second quarter of 2010.

A separate report from the Commerce Department showed ground breaking for new homes dropped 9,8 percent to a seasonally adjusted annual rate of 999 000-unit pace.

It was the largest percentage decline since April, but housing starts were coming off a multi-year high reached in November and the decline was smaller than economists had expected.

In addition, cold weather appeared to be a factor.
For all of 2013, starts increased 18,3 percent to an average of 923 400-units.

“Despite the expected drop in housing construction activity in December, due to the unwind of the unsustainable strength in November and weather effects, the overall tone of this report was quite encouraging suggesting that the sector ended the year on fairly strong footing,” said Millan Mulraine, deputy chief US economist at TD Securities in New York.

Ground breaking for single-family homes, the largest segment of the market, fell 7,0 percent to a 667 000-unit pace in December. — Reuters.