Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, March 16, 1994 TAG: 9403160171
SECTION: BUSINESS PAGE: B-7 EDITION: METRO
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
The winter weather and the aftermath of the California earthquake held down most factory output, the Federal Reserve Board said.
But the surge in production of motor vehicles and their parts - along with increased computer manufacturing - produced the ninth straight monthly rise in industrial output.
Production rose 0.5 percent in January, spurred by a 3.6 percent surge in utility output.
By contrast, the Fed said more-moderate weather in the second half of February led to a 1.3 percent decline in electric and gas utilities.
The operating rate at industrial companies edged up 0.1 percent to 83.4 percent, up from a revised 83.3 percent for January. The February figure is the highest since June 1989.
Industrial production exceeded the expectations of many economists, who predicted it would remain unchanged.
Truck and car production jumped 5.3 percent, leading to a 0.9 percent gain in all durable goods - those expected to last at least three years. Excluding cars, production of durable goods declined 0.6 percent. Computer production rose 2.9 percent, accounting for a 1 percent increase for the second straight month in business equipment.
Factory output expanded 0.6 percent last month, after January's 0.2 percent rise.
Production of nondurable goods declined 0.2 percent, with rebounds in paper and food-processing industries largely offset by declines in textiles, apparel, leather goods, and chemicals and related products.
Construction supplies, affected by the weather, dipped 0.8 percent after a 0.3 percent decline.
Output at mines increased 0.8 percent, in part because of higher coal production.
by CNB