Economy

The increase in factory production reflects rebounds in output of both business and construction supplies, adds to signs of a recovery in manufacturing.

The core CPI rose from a year ago by the least since 2021, and traders boosted bets that the Federal Reserve will cut interest rates three times this year.

Last year's "One Big Beautiful Bill" and federal immigration policies are mostly to blame for the increased deficit.

At the same time, revisions to last year's data show that job gains averaged just 15,000 a month last year, down from the initially reported pace of 49,000.

It was not fully clear whether he was referring to year-over-year growth, but the U.S. economy has grown at an average annual rate of 2.8% over the past five decades.

In December, the PPI rose the most in three months, while an underlying gauge that strips out food and energy jumped at one of the fastest rates of 2025.