Cold weather causes factory output to drop

WASHINGTON (AP) — Harsh winter weather led to a steep drop in U.S. factory output in January. Manufacturers made fewer cars and trucks, appliances, furniture and carpeting, as the recent cold spell ended five straight months of increased production

The Federal Reserve says factory production plunged 0.8% in January, reversing gains of 0.3% in both December and November. Automakers lost days of production because of snowstorms, as their production plummeted 5.1%.

Overall industrial production, which includes manufacturing, mining and utilities, fell 0.3% in January. Output for utilities rose 4.1% last month as the freezing temperatures boosted heating demand.

Factories responded to the weather by running at a lower 76% capacity, a 0.7 percentage point drop over the month and 2.7 percentage points below the long-run average.