What January's industrial production data says about the state of the economy

Retail sales were the big story on Wednesday, but the January readings of U.S. industrial production and producer prices also provided important insights into the economy.The big picture: Industrial production rose by 0.9% month over month, following a downwardly revised 1.3% gain in December, and is rapidly approaching levels seen before the pandemic.However, the growth in production was well below the growth in retail sales, suggesting that either the increase is coming entirely from inventory reductions or exports.The pickup in U.S. imports and Chinese exports in recent months suggests it is the latter, and combined with supply constraints and bottlenecks in Asia could weigh on overall U.S. growth.U.S. capacity utilization has bounced back from its pandemic lows but is still at its lowest rate since February 2017.The Producer Price Index rose 1.3% last month over December, the biggest gain since December 2009 when the government revamped the series. Producer prices rose 1.7% over January 2020 — strongly beating expectations of a 0.4% month-over-month gain and 0.9% annual gain.Be smart: Taken together, the data tell a story of demand returning but supply not quite keeping up, meaning prices rise.

Comments

Business News

DWP sending £230 to state pensioners on Tuesday if they have two-digit code

I bought a $14,000 Rolex watch to celebrate a career milestone. Some don't understand my lavish purchase, but it's a symbol of my success.

about 1 hour ago

Why US firms shouldn't count on the new Ukraine minerals deal — at least not straight away

I lost power for 14 hours during the Spain blackouts. It felt like a 'Black Mirror' episode, but I learned a valuable lesson.

about 3 hours ago

I tried the longevity infusion celebrities and athletes swear by. I'm still skeptical, but I get the appeal.

about 3 hours ago

We moved halfway across the country so my kids could be near their grandparents. We get more support, and they get more time together.

about 3 hours ago

Hegseth says the Pentagon is done 'walking on eggshells.' Women in uniform say it feels like a 'slap in the face.'

about 3 hours ago

Temu will stop sending ultra-cheap goods straight to the US after trade loophole crackdown

about 3 hours ago

I've kept these dead, dusty flowers from my grandmother for nearly a decade. I should have thrown them out years ago, but can't.

about 3 hours ago

After paying people to leave, one federal agency is scrambling to fill positions

Comments

Business News

DWP sending £230 to state pensioners on Tuesday if they have two-digit code

Co-op admits hackers accessed customer details in cyberattack

Shoe chain to shut branch within WEEKS after 113 years as closing down sale launched

10 free days or for as little as £1 for anyone on Universal Credit on May bank holiday

19 Video Game Movies That Are Actually Good

Jill Sobule’s Legacy Is So Much Grander Than One Hit Song

This year's Met Gala isn't just about fashion. Anna Wintour is making a statement.

Starbucks wants to add an afternoon snack menu. I'm hungry &mdash; I can see why.

Bill Gates is dating philanthropist Paula Hurd. Here's a timeline of their relationship.

How televised drone racing gave birth to a new company now making cutting-edge tech for the US military

I bought a $14,000 Rolex watch to celebrate a career milestone. Some don't understand my lavish purchase, but it's a symbol of my success.

Why US firms shouldn't count on the new Ukraine minerals deal &mdash; at least not straight away

'The truckers are scrambling': Trump's tariffs hit drivers, L.A. port workers hard

Urgent warning to millions of Co-op customers after cyber attack which forced IT system to shut down

Dragons’ Den millionaires axe popular food from another UK supermarket – months after vanishing from Asda & Sainsbury’s

River Island's 'stunning' £36 summer bag that’s 'giving Ibiza'

Amazon shoppers say £6 cream is ‘perfect for gardener's hands’ with 85k reviews

Roman summer dress with pockets 'looks amazing' as shoppers 'get lots of compliments'

'I tested the discounted Ninja Woodfire and it's a game-changer for bank holiday barbecues'

Andy Jassy says he's trying to restore Amazon's culture by getting rid of these 2 things

I lost power for 14 hours during the Spain blackouts. It felt like a 'Black Mirror' episode, but I learned a valuable lesson.

I tried the longevity infusion celebrities and athletes swear by. I'm still skeptical, but I get the appeal.

We moved halfway across the country so my kids could be near their grandparents. We get more support, and they get more time together.

Hegseth says the Pentagon is done 'walking on eggshells.' Women in uniform say it feels like a 'slap in the face.'

Temu will stop sending ultra-cheap goods straight to the US after trade loophole crackdown

I've kept these dead, dusty flowers from my grandmother for nearly a decade. I should have thrown them out years ago, but can't.

After paying people to leave, one federal agency is scrambling to fill positions

British Gas customers in England can get up to £546 off energy bills

Easy trick to extend Tesco Clubcard vouchers as £xmillion due to expire within weeks

I’ve lost £400k to cowboy builder – my house is totally unlivable & there’s no end in sight… now I’m warning others

FC Barcelona Versus Real Valladolid Line Up: Flick’s Many Rotations

On the Brink: Online trading groups filling an ‘overwhelming’ gap for families

Primark's 'chic' £26 sandals look 'just like' £158 luxury version

Molly-Mae’s ‘supportive’ blue bikini is from trendy brand worn in The White Lotus

How do I find a good accountant? Five top tips from a tax expert

An American retiree spent $18,807 for cancer treatment abroad. She said medical tourism saved her money and stress.

2 new stealth fighter jets will expand who's in the world's top air forces

Americans love Social Security. Its overworked staff feels like 'the enemy.'

I had a seizure while on a date with a man I'd only known for a few weeks. We've now been together for almost 2 years.

Trump's tariffs are fueling a rise in weird new gadgets

I went to Cornell's new MakerLAB, and student entrepreneurs told me they're 'bracing' for Trump's threats to cut funding

How a bank CEO turned VC investor thinks about AI &mdash; and uses ChatGPT to handle emails

Trucker hats, squishy toys, and copious candy: Weird and wonderful finds at Warren Buffett's 'Bazaar of Bargains'

See the Anduril drones that are taking AI-driven warfare to new heights

American shoppers love having lots of options. Trump's trade war could end that.

A massive Star Wars re-release shows fans are desperate for more movies

Bill Gates' daughter Phoebe says she showed him how to 'work the room' socially

'Juice this hog': How real estate companies supersized renter fees

Wall Street stocks bounce back from Trump tariff losses

Tariffs on car parts entering the US come into force

Why Designated Beneficiaries Are Key to Your Estate Planning

Keir Starmer has one desperate card left to play as voters rebel - it will ruin Britain

Family to refurbish and reopen hotel in historic Scottish village

Is US stock market domination after 100 days of Trump?

Banking giant flags confidence 'dip' as tariffs casts shadow of uncertainty

Brian Donnelly: New routes and aircraft 'demonstrate commitment' to Scottish airport

I tried supermarket jams – an 89p winner and tastes better than posher brands

Wedding Planning Via Generative AI

UFC Des Moines: What Time Does Tonight’s Fight Card Start?

Hovis and Kingsmill-owners in talks about historic bread merger

Starbucks wants to add an afternoon snack menu. I'm hungry — I can see why.

Why US firms shouldn't count on the new Ukraine minerals deal — at least not straight away

How a bank CEO turned VC investor thinks about AI — and uses ChatGPT to handle emails