NEW YORK ( TheStreet) -- Industrial production and capacity utilization rose more than expected in December, as manufacturing, mining and utilities output increased. Industrial production gained 0.8% after rising 0.3% in November. Economists were expecting production to rise by 0.6% according to Briefing.com. In 2010, industrial production rose 5.9%. Manufacturing and mining output both rose 0.4%. Utilities output, which tends to vary sharply from month to month, jumped 4.3% as extreme weather raised demand for heating. Capacity utilization rose to 76% from 75.4% in November, led by higher utilization rates in manufacturing and utilities. The rate is 4.6 percentage points below its average from 1972 to 2009, indicative of the slack in the economy. A utilization of 85% and above is considered a threshold for inflationary pressures. -- Written by Shanthi Bharatwaj in New York >To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: firstname.lastname@example.org.