WASHINGTON, Feb 15 Reuters Production at U.S. factories unexpectedly fell in January, weighed down by harsh winter weather.

Manufacturing output dropped 0.5 last month after an unrevised 0.1 gain the prior month, the Federal Reserve said on Thursday. The Fed attributed the decline to winter weather.

Economists polled by Reuters had forecast factory output would be unchanged. Production at factories fell 0.9 on a yearonyear basis in January.

Manufacturing, which accounts for 10.3 of the economy, could be on the verge of recovery after treading water for much of 2023 following 525 basis points worth of interest rate hikes from the U.S. central bank since March 2022. A survey from the Institute for Supply Management early this month showed its manufacturing PMI contracting slightly in January.

Motor vehicle and parts output slipped 0.2 last month after increasing 3.2 in December. Durable goods manufacturing production edged up 0.1. There were large increases in the production of electrical equipment, appliances and components as well as aerospace and miscellaneous transportation equipment.

Output of computer and electronic products also rose, lifted by semiconductor production. But output of nonmetallic mineral products and primary metals fell.

Production of nondurable goods dropped 1.1. There were significant weatherrelated declines in the output of petroleum and coal, chemicals, plastics and rubber products.

Mining output fell 2.3 as harsh weather weighed on oil and…