WASHINGTON—Industrial output in America rose starkly last month, driven largely by cold weather-induced utility usage, but this masked underlying weakness in factory production.

Industrial production, a measure of factory, mining and utility output, rose a seasonally adjusted 0.6% in November from the prior month, the Federal Reserve said Friday. This was driven by a stark 3.3% rise in utilities output, which is impacted by weather patterns; November’s average temperature was in the coolest third of the historical record,...