**MNI: 5 Things We Learned From Jan Industrial Production Data>

By Sara Haire and Holly Stokes

     WASHINGTON (MNI) - The following are the key points from the 

Industrial Production and Capacity Utilization data for January 

released by the Federal Reserve Thursday: 

     - Industrial production came in weaker than the +0.2% expected at 

-0.1%, and December IP was revised down to +0.4% from +0.9%, but 

November was revised up to +0.3% from -0.1%. This puts January y/y IP at 

+3.7%. 

     - With January's cold front, utilities provided some lift with a 

0.6% gain. However, as expected, this was considerably softer than 

December's revised down 4.6% surge.  

     - As previewed by MNI's 5 Things To Look For, manufacturing 

provided no support to IP, coming in with a flat reading for the second 

month in a row.  

     - Capacity utilization came in at 77.5%, below the 78.0% expected 

and continuing analysts' trend of overestimating January capacity 

utilization. 

     - Mining surprised to the downside wth a 1.0% fall. Analysts had 

hoped that January's strong crude oil prices and creeping rig counts 

would mean increased productivity - however, this has yet to manifest in 

the data. December mining was also revised down heavily from the 1.6% 

gain to a -0.4% decline, partially explaining December's IP revision. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$]