U.S. Industrial Production Falls Due To Cold Weather

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Meanwhile, here are the major economic headlines from the last week:

• U.S. industrial production fell 0.1 percent in January 2024 as manufacturing output declined 0.5 percent and mining output dropped 2.3 percent due to winter weather conditions. The utilities’ index rose six percent, meanwhile, as demand for heating surged following unusually cold temperatures in January. At 102.6 percent of its 2017 average, total industrial production was identical to its level from January 2023. Click here to read the full report.
• According to Statistics Canada, manufacturing sales in the country fell 0.7 percent to $71.2 billion in December 2023. Sales of motor vehicles were down 13.5 percent to $4.4 billion, the lowest level since December 2022. A 3.1 percent drop of sales of chemical products also contributed to the more negative report.
• Led by the personal and household goods subsector and the food, beverage and tobacco subsector, wholesale sales in Canada expanded 0.3 percent to $82.9 billion between November 2023 and December 2023. Sales were up 1.2 percent between December 2022 and December 2023.
• The Federal Reserve Bank of New York reported that its monthly manufacturing survey for the New York region rose 41 points, but remained negative at -2.4, indicating a slight contraction in the sector. New orders declined modestly and employment levels were relatively unchanged, but shipments edged higher. Additionally, the six-month outlook improved slightly. The Federal Reserve Bank of Philadelphia reported its manufacturing survey rose slightly, to -10.6 in January from -12.8 in December, even though the readings for new orders and shipments both rose in January. Employment was largely unchanged, however. Read the full report here.
• Prices for U.S. imports expanded 0.8 percent from December 2023 to January 2024. Prices for fuel consumer goods, capital goods, automotive vehicles, and foods, feeds, and beverages all contributed to the overall advance. U.S. export prices also increased, rising 0.8 percent in January, after falling 0.7 percent in December.
• The number of new homes under construction in the United States fell 14.8 percent between December 2023 and January 2024 and 0.7 percent between January 2023 and January 2024. Read the full report here.
• The number of people who applied for U.S. unemployment benefits (https://www.dol.gov/ui/data.pdf) fell by 8,000 to 212,000 during the week that ended February 15. Averaged over the past four weeks, first-time claims declined to 212,750. In all, roughly 1.9 million people claimed benefits in the United States during the week that ended February 3.
• In other economic news announced last week: real U.S. average hourly earnings  increased 0.3 percent from December 2023 to January 2024; the U.S. Producer Price Index rose 0.3 percent from December 2023 to January 2024 and 0.9 percent from January 2023 to January 2024; and the U.S. Consumer Price Index rose 0.3 percent for the month in January, but was up 3.1 percent year-over-year.