us industrial production stagnated in january weighed by lower utilities output but the key manufacturing sector rebounded from the falls recorded at yearend industrial productionwhich comprises manufacturing mining and utility outputwas unchanged in january after a revised 1 drop in december data from the federal reserve showed wednesday the reading misses the 04 expansion expected by economists in a poll from the wall street journal the us manufacturing sector lost momentum at the end of 2022 as high interest rates hit new demand for goods both domestically and globally economists dont expect the situation to improve significantly in the shortterm as the drag from higher borrowing costs intensifies still in january overall production was supported by a jump in manufacturing outputthe largest component of industrial productionwhich rose 1 on month reversing part of the 18 decline recorded in december there were gains for both manufacturing of durable goods and nondurable goods and production of motor vehicles and parts increased 05 in january we would still not be surprised to see some further slowing in manufacturing production beyond january as production moderates with already a number of months of weaker new demand for goods economists at citi said in a note ahead of the data release however we do see some upside risk to production in sectors like transportation related both to pentup demand as supply issues ease and some new demand due to a large increase in orders for aircraft at the end of 2022 they said the gain in factory output was offset by a sharp 99 decline utilities output as warmerthanusual weather reduced demand for heating mining output rose 2 on month the fed said capacity utilization which reflects how much industries are producing compared with what they could potentially produce decreased marginally to 783 in january from 784 the prior month