Industrial output falls 0.1% unexpectedly amid supply issues
U.S. industrial production fell 0.1% in December, the first decline since September, with weakness in factory output showing that manufacturers are still struggling with snarled supply chains
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.U.S. industrial production fell 0.1% in December, the first decline since September, with manufacturers still struggling with snarled supply chains.
Many economists had expected a small increase in production last month as factories recovered.
Yet manufacturing output actually fell by 0.3%, with output at auto plants down 1.3%. Automakers have been hurt by supply chain problems, especially shortages of crucial computer chips.
Output from utilities fell 1.5% last month, reflecting unusually warm December weather. Output from mining, which covers oil and gas production, was the only major category showing an increase, a gain of 2% last month.
Economists believe that industrial production will continue to struggle to meet strong demand as long as problems affecting supply chains persist. There is concern that the surge in COVID-19 cases because of the omicron variant will result in shortages of factory workers, which could intensify supply chain problems.