WASHINGTON - US industrial production fared much better than expected last month, rising sharply as aircraft manufacturing rebounded after the end of a strike at Boeing.
Industrial output increased by 0.9 percent in December after rising by a revised 0.2 percent a month prior, the Federal Reserve said in a statement.
This was sharply above market expectations for a 0.3 percent rise in December, according to Briefing.com.
"This report adds to the body of evidence that is telling the Fed there is no harm in waiting a while before that next rate cut," economists at High Frequency Economics wrote in a note to clients.
The return to growth of US industrial production is welcome news for manufacturers, following a slump that started in September.
The Fed noted that "the resolution of a work stoppage at a major aircraft manufacturer" helped propel gains in the output of aircraft and parts, a reference to a recent strike at US aviation giant Boeing.
The company's operations were hampered by a labor strike that shuttered two major assembly facilities in the Seattle region for more than seven weeks until mid-December.
"Manufacturing output rose 0.6 percent after gaining 0.4 percent in November," the Fed said.
Mining output surged 1.8 percent after contracting by 0.5 percent in November, and the index for utilities jumped 2.1 percent, fueled by a sharp rise in the index for natural gas.
"The majority of market groups posted gains in December," the Fed said, noting a 0.5 percent rise in the output of consumer goods.