Industrial production at U.S. factories, mines, and utilities was unchanged in February, but factories increased output for the third consecutive month, helping the economic recovery and driving the best job growth since the recession ended. The Federal Reserve (Fed) reported Friday that output at U.S. factories rose 0.3 percent last month, following stronger increases in January and December, which combined for the best two-month performance since 1998. Manufacturers made more electronics, energy products and electrical equipment in February, while auto production declined after two months of growth. Overall industrial production was flat because mining activity declined sharply in February and utility output was flat. Factory output has risen 17.4 percent since the lows of the recession in June 2009, but it remains 6.7 percent below its pre-recession peak reached in December 2007. Manufacturing has strengthened significantly since last summer, when it faltered because of supply disruptions caused by the Japan earthquake and tsunami. Factories are benefitting from strong auto sales and growing business investment in machinery and other equipment. The increased demand has led to more jobs. The government said last week that manufacturers added 31,000 jobs in February. Factories have added 227,000 jobs over the past year.
