U.S. industrial output likely to have remained flat in January

Industrial production in the U.S. is likely to have remained flat in January. In the prior month, industrial output had risen 0.8 percent, owing to a massive 6.6 percent jump in utility output. However, this component might have reverse course in January. Edison Electric stated that production of electricity dropped 1.4 percent year-on-year in January. This might have resulted in a 3.2 percent monthly fall in this component, noted Societe Generale in a research report.

In the meantime, with the increase in hours of manufacturing in the employment report and also a small increase in factory payrolls, manufacturing activity might have increased 0.3 percent. In all, industrial production might have remained flat in the month of January that might have resulted in a small decline in capacity utilization to 75.4 percent, added Societe Generale.