Industrial output falls 0.1% unexpectedly amid supply issues

U.S. industrial production fell 0.1% in December, the first decline since September, with weakness in factory output showing that manufacturers are still struggling with snarled supply chains

WASHINGTON -- 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. Output from mining, which covers oil and gas production, was the only major category showing an increase, a gain of 2% last month.