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Industrial Output in January Up 0.8%

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From Bloomberg News

U.S. industrial production rose 0.8% in January as factories churned out more vehicles, appliances and computers, replenishing inventories as the economy gains strength.

The increase in production at the nation’s factories, mines and utilities last month follows no change in December, the Federal Reserve said Tuesday. Colder weather across parts of the nation boosted utility output by the most since December 1989.

Record-low inventories relative to sales have prompted factories to speed up assembly lines to meet demand. Dell Inc., Deere & Co. and Analog Devices Inc. are among companies benefiting from gains in corporate spending on equipment. Federal Reserve Chairman Alan Greenspan told Congress the economy could expand as much as 5% this year, the most in two decades.

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The proportion of industrial capacity in use rose to 76.2%, the highest since June 2002, from 75.6%. Work at factories, which accounts for almost 90% of industrial production, rose 0.3% last month after rising 0.1% in December.

Electric and gas utility production surged 5.2% last month after falling 1.3% in December.

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