Industrial Production Holds Steady

U.S. industrial production was unchanged in January, while the plant use rate fell, confirming other signs that the economy is losing momentum after a strong fourth quarter, the Federal Reserve said Friday.

Output at factories, mines and utilities remained flat last month, after rising a revised 0.5 percent in December, as demand slowed for consumer goods, particularly home appliances and building materials.

The Fed also said the plant-use rate, which measures the amount of industrial capacity being used, decreased to 83.3 percent in January from an revised 83.5 percent during December. The December number was estimated a month ago as being 83.8 percent.

In other economic reports this week:

The Commerce Department reported Thursday that retail sales rose 0.6 percent to a seasonally adjusted $209.1 billion, from $207.9 billion in December.

The Labor Department said that productivity, the key measurement of how fast living standards can rise, increased 0.8 percent in 1996 - the best in four years, though still lackluster.