WASHINGTON (AP) — 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 reduced heating demand. 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 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.
