US industrial production fell by 2 percent in December, much worse than the 0.8 percent decline expected by analysts, the Federal Reserve reported on Friday.

The bigger-than-expected drop in overall industrial production, an indicator of the output of mines, factories and utilities, followed a smaller decrease of 1.3 percent in the previous month.

The US central bank's report showed that manufacturing output plunged 2.3 percent last month after having dropped 2.2 percent in the previous month, indicating the sector is suffering like the rest of the economy through the deepening recession, which has cut consumer demand for many products.

Mining output, a category that includes oil and natural gas production, dropped 1.6 percent, in contrast to an increase of 2.2 percent in November.

Output at the nation's utilities, meanwhile, edged down 0.1 percent, reversing the 1.0 percent rise in November.

Capacity utilization for total industry was 73.6 percent last month, a rate below its year-earlier level of 81.0 percent and its 1972-2007 average of 81.0 percent. The December rate was down from the 75.2 percent rate in November.

(Xinhua News Agency January 17, 2009)