01:51 PM EST, 02/14/2025 (MT Newswires) -- US industrial production increased more than projected in January amid gains in aerospace equipment and utilities, data from the Federal Reserve showed Friday.

Industrial output rose 0.5% last month following an upwardly revised 1% increase in December. The consensus was for a smaller 0.3% increase in a survey compiled by Bloomberg. Annually, industrial production gained 2% in January.

Manufacturing output fell 0.1% last month after a 0.5% gain in December. The index for durable manufacturing remained unchanged in January, while the nondurable component fell 0.3%. Both grew 0.6% each in December, the data showed.

Within durables, aerospace and miscellaneous transportation equipment output jumped 6% last month, while motor vehicles and parts declined 5.2%.

Aircraft and parts production is "healing" from late last year's work stoppage at planemaker Boeing ( BA ) , Oxford Economics Lead US Economist Bernard Yaros said in remarks e-mailed to MT Newswires. "Despite the monthly vagaries of the data, factory conditions are trending in the right direction."

Utilities output jumped 7.2% in January as demand for heating got a boost from cold temperatures, the Fed said. Mining output fell 1.2% following a 2% gain in December.

Oxford Economics said it sees industrial production this year taking a hit from potentially "larger and swifter" tariff increases on major US trading partners.

On Thursday, President Donald Trump signed a memorandum ordering the development of a plan to impose "reciprocal tariffs" on other countries. Earlier this week, he signed proclamations raising tariffs on metal imports to 25%. The European Union vowed to retaliate. Mexico and Canada also reportedly condemned Trump's move.

Last week, Trump delayed plans for 25% general import tariffs on Canada, which ING recently said was the biggest supplier of aluminum to the US in 2023. China has set out a series of retaliatory tariffs against the US, while the Trump administration paused the announced general tariffs on Mexico.

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