US factory output jumps in February amid recovery hopes

US factory Car and vehicle production pushed factory activity higher, following higher car sales

Related Stories

US manufacturing activity rebounded in February, thanks to a strong increase in vehicle production.

Factory production rose a seasonally adjusted 0.8% in February from the previous month, after falling 0.3% in January, the Federal Reserve said.

Meanwhile, inflation rose by the largest amount in nearly four years in February, driven by rising gas prices.

The figures added to improving sentiment over the outlook of the US economy and the jobs market.

Output in cars, vehicles and parts showed the biggest rise, gaining 3.6% after falling 4.9% in January, according to figures by the Federal Reserve.

Manufacturers increased hiring last month, adding 14,000 jobs. The industry has added 39,000 in just the past three months.

Joseph LaVorgna, chief economist at Deutsche Bank, raised his forecast for first-quarter growth to an annualised rate of 3% from a previous estimate of 1.5%.

Meanwhile, the Labor Department said that the consumer price index increased 0.7% in February from the previous month, the largest increase since June 2009. Gasoline prices, which rose 9.1% last month, accounted for about 75% of the rise.

But excluding food and energy, which are volatile, consumer prices rose just 0.2% during that month.

Federal Reserve officials will meet next week to assess the economy, including whether or not to extend its bond-purchasing programme aimed at spurring growth.

More on This Story

Related Stories

More Business stories


Features & Analysis

  • An ant and a humanMass of bodies

    Do all the world's ants really weigh as much as all the humans?

  • Taxi in Mexico Freewheeling

    How I got my driving licence without taking a test

  • Tattooed person using tabletRogue ink

    People who lost their jobs because of their tattoos

  • Indian coupleSuspicious spouses

    Is your sweetheart playing away? Call Delhi's wedding detective

Elsewhere on the BBC

  • GeoguessrWhere in the world...?

    Think you are a geography expert? Test your knowledge with BBC Travel’s interactive game


  • StudentsClick Watch

    Could a new social network help tailor lessons to students’ needs and spot when they fall behind?

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.