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otal industrial production rose 0.1% in the United States in December, the Federal Reserve reported Friday, but factory production increased 0.3%.
The increase in production at the nation's factories, mines and utilities last month followed a revised 1% increase in November, which was the biggest since October 1999. The Fed also said the proportion of industrial capacity in use held at 75.8% in December.
In a separate report released Friday, inventories at the nation's manufacturers, retailers and wholesalers rose 0.3% in November after a 0.4% rise in October, the Commerce Department said. Stocks at manufacturers dipped 0.2%.
Sales of goods at businesses were up 0.5%, outpacing the inventory increase and ensuring the stocks-to-sales ratio remained at a record low of 1.35 months.
With sales rising faster than inventories, analysts said companies likely will need to refill shelves to keep up with demand, Reuters reported.
The Fed said in its report that for 2003, capacity use fell to 74.9% from 75.6% in 2002, the slowest operating rate since 1983.
In December, electric and gas utility production dropped 1.4% last month, erasing the 1.4% rise in November. Mine production was unchanged last month.
