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As industrial output rises, consumer prices rice |
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Written by Staff Writer
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Mar 16, 2007 at 08:28 AM |
By Glenn Somerville
U.S. core consumer prices rose modestly in February while production by the nation's factories, mines and utilities was unexpectedly strong, according to data on Friday that seemed to reduce chances of interest-rate cuts any time soon.
The separate reports from the Labor Department on prices and from the Federal Reserve on industrial production reinforced an impression that the economy retains its resilience despite strains from a slumping housing market.
The Consumer Price Index compiled by the Labor Department rose 0.4 percent after a 0.2 percent January rise, while core prices were up 0.2 percent after a 0.3 percent January gain.
Wall Street analysts had forecast a more moderate 0.3 percent gain in overall prices but correctly anticipated the 0.2 percent rise in core costs.
Later, the Fed said industrial production shot upward by 1 percent last month -- five times the 0.2 percent rise that had been forecast. But the jump was partly due to a cold weather-induced 6.7 percent jump in output by utilities last month, the biggest increase since a seven percent gain more than 17 years ago in December 1989.
Manufacturing was solid, with production rising 0.4 percent in February after a 0.5 percent decline in January. Motor vehicles output was up 3.1 percent last month after a 5.8 percent fall in January.
(REUTERS) |
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Last Updated ( Mar 17, 2007 at 04:16 PM )
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