LXFR - 4 Solid Stocks to Buy on Rebounding Industrial Production | Benzinga
Production at U.S. factories has started showing signs of rebounding although it remains less than the year-ago levels. Industrial production rose an impressive 0.5% in February after declining 1.1% in January, and surpassed analysts' expectations of a rise of 0.3%, the Federal Reserve said on Mar 15.
Production at U.S. factories had increased 0.1% in December after a difficult 2023 that saw manufacturing output shrinking. Manufacturing output in February also rebounded, increasing 0.8% after declining 1.1% in January.
Although production at factories fell 0.7% year over year, the month-over-month gain indicates a steady recovery.
Capacity utilization for the industrial sector remained unchanged at 78.3% in February. However, capacity utilization for manufacturing jumped 0.6% in February.
The manufacturing sector, which accounts for 10.3% of the economy, suffered throughout 2023 as demand shrank amid growing price pressures. The Federal Reserve adopted a strict monetary tightening policy, increasing interest rates by 525 basis points, to curb multi-decade high inflation.
The Federal Reserve's stance saw inflation declining sharply over the past year. This saw demand rebounding ...