Activity at the nation's factories, mines and utilities increased 0.8 percent last month, the Federal Reserve said Friday. Industrial production was up in every month but one in 2010.
Overall industrial activity has risen 11 percent since hitting its recession low in June 2009. But it is still 6 percent below its peak reached in September 2007.
Factory production, the biggest slice of industrial output, rose 0.4 percent, the sixth straight monthly increase. Makers of computers and electronic products, clothing and leather, chemicals and other products were among the industries seeing gains. But auto production dipped.
"Manufacturing looks like it is doing its job and moving the economy ahead," said John Silvia, chief economist at Wells Fargo.
Separately, the Commerce Department said retail sales rose for a sixth consecutive month in December. Sales are 13.5 percent above the recession low hit in December 2008.
And consumer prices rose 0.5 percent last month, the largest increase in 18 months and a reflection of rising gas prices, the Labor Department said. But outside of energy costs, there was little sign of widespread inflation. Core inflation, which strips out volatile energy and food, was up just 0.1 percent in December.
Rising factory production has played a crucial role in lifting the economy out of the recession.
Factories started producing more as US companies placed more orders to replenish stockpiles that they slashed during the downturn. Then in the final months of 2010, consumers and businesses showed a bigger appetite to spend, encouraged in part by the improving economy.
A recovering global economy, meanwhile, also is helping.
Sales of US exports to foreign countries has been a key force supporting US economic growth.
Rising US factory production, however, has only recently led to more hiring at factories.
Employment in manufacturing grew by 10,000 in December, the first increase since July. Factory workers' hours stayed the same last month, as did their overtime.
Friday's report also showed that production at gas and electric utilities rose 4.3 percent in December, marking the second straight monthly gain. Unusually cold weather boosted demand for heating. Output at mines rose 0.4 percent, after dipping in November.
For all of 2010, industrial production dipped only once — in October. The decline happened only because unseasonably warm weather led to a sharp drop at utilities.
