U.S. Industrial Output Gets a Boost From Cold February
NEW YORK — U.S. industrial output grew in February, mainly because of a weather-related boost in utility demand, and consumer sentiment plateaued in March at levels seen during the last economic downturn.
Cold weather in February boosted overall output at U.S. industrial outlets 0.7%, the Federal Reserve said Friday, in line with forecasts and up from a downwardly revised 0.3% decline in January.
This year had the warmest January in more than a century, keeping a lid on demand for energy used to heat homes. February, however, was cold in many parts of the country. As a result, utility production rebounded 7.9% last month.
But warmer weather this month apparently failed to boost consumer sentiment. The University of Michigan’s confidence index held steady at 86.7 in mid-March, below analysts’ median forecast of 88.
The reading, which analysts called historically unimpressive, was still 10 points below its level before Hurricane Katrina last year forced a large spike in gasoline prices and resulted in a huge slump in the index.
Moreover, the gauge remained below its level of April 2001, when the U.S. economy was entering its last recession.
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