WASHINGTON, D.C.: U.S. factories ramped up production in February, with a sharp rebound in motor vehicle output helping to drive manufacturing gains.

However, uncertainty over tariffs and trade policies threatens to derail the sector's momentum.

The Federal Reserve reported this week that factory output surged 0.9 percent last month after a revised 0.1 percent increase in January. The jump exceeded economists' forecasts of a 0.3 percent gain, reflecting a stronger-than-expected recovery in the manufacturing sector.

Production at factories rose 0.7 percent compared to a year ago, continuing a gradual rebound as the U.S. central bank eased interest rates starting in September. Manufacturing, which makes up 10.3 percent of the economy, has shown signs of stability in recent months.

President Donald Trump's evolving tariff policies, however, cast doubt on the sector's long-term outlook. J.P. Morgan economists noted that "no long-term improvement in manufacturing was observed as a result of the 2018 tariffs," and concerns remain that the administration's latest trade measures could weaken the recovery.

Policymakers continue to monitor how Trump's trade agenda and tariffs impact economic growth.

Motor vehicle and parts production surged 8.5 percent in February after declining for two consecutive months. Durable goods manufacturing rose 1.6 percent, driven by increased output of long-lasting products, while nondurable manufacturing inched up 0.2 percent. Gains in chemicals offset a decline in food, beverage, and tobacco products.

Mining activity rebounded 2.8 percent after a 3.2 percent drop in January. Meanwhile, utility production fell 2.5 percent as warmer temperatures reduced heating demand, following a sharp 6.1 percent jump in January due to cold weather.

Overall industrial production climbed 0.7 percent last month, marking a 1.4 percent increase from a year earlier.

Capacity utilization in the industrial sector, which measures how much businesses are using their available resources, rose to 78.2 percent from 77.7 percent in January. The manufacturing sector's operating rate improved by 0.6 percentage points to 77.0 percent, though it remains 1.2 percentage points below its long-term average.