U.S. Factories Wrap Up ‘97 In High Gear

Economy

A solid December gain at the nation’s factories, mines and utilities finished a good year for industrial America and provided momentum that should help the U.S. economy withstand the Asian financial crisis.

Industrial production rose a seasonally adjusted 0.5 percent last month after more rapid gains of 0.8 percent in November and 0.7 percent in October, the Federal Reserve said Friday.

For the year, production was up 5 percent. That compares with a 3.5 percent increase in 1996 and was the best since a 5.4 percent advance in 1994.

In other economic reports this week:

Consumer prices edged a seasonally adjusted 0.1 percent higher in December, holding the gain for the full year to just 1.7 percent, the Labor Department said. That’s about half the 3.3 percent increase of 1996 and the best performance since 1986.

The Commerce Department said retail sales rose 0.7 percent in December. For the year, sales rose 4.2 percent to $2.55 trillion, down from 5.2 percent in 1996.