WASHINGTON — Industrial production rose in December by the largest amount in five months, providing the economy with solid momentum heading into the new year.
Activity at the nation’s factories, mines and utilities increased 0.8 percent last month, the Federal Reserve said Friday. Industrial production was up in every month but one in 2010.
Overall industrial activity has risen 11 percent since hitting its recession low in June 2009. But it is still 6 percent below its peak reached in September 2007.
Factory production, the biggest slice of industrial output, rose 0.4 percent, the sixth straight monthly increase. Makers of computers and electronic products, clothing and leather, chemicals and other products were among the industries seeing gains.
But auto production dipped.
“Manufacturing looks like it is doing its job and moving the economy ahead,” said John Silvia, chief economist at Wells Fargo.
Other economic reports showed:
• Retail sales rose for a sixth consecutive month in December, the Commerce Department said. Sales are 13.5 percent above the recession low hit in December 2008.
• Consumer prices rose 0.5 percent last month, the largest increase in 18 months and a reflection of rising gas prices, the Labor Department said. But outside of energy costs, there was little sign of widespread inflation. Core inflation, which strips out volatile energy and food, was just 0.1 percent in December.
• U.S. businesses added to their inventories for an 11th consecutive month in November as sales posted another strong increase, Commerce said.
