U.S. Production Ended 1998 on High Note

Despite falling exports, U.S. industries churned out more goods in December and managed their most vigorous quarterly gain of the year in the last three months of 1998, the Federal Reserve said. After lagging for much of the year, production by the nation’s mines, factories and utilities increased 0.2% last month following an upwardly revised dip of 0.1% in November and a 0.5% gain in October. For the full year, however, industrial production grew only 3.7%, the smallest increase in annual output since a 3.5% rise in 1993. Businesses ran at 80.9% of maximum capacity last month, the weakest level since 80.6% in August 1993. A global slump in emerging markets in Asia and Latin America has sapped demand for many U.S.-made goods abroad. But production has stayed strong amid robust domestic demand.