Industrial Output Up Sharply in November
Tuesday December 16, 10:08 am ET
WASHINGTON (Reuters) - U.S. factories, mines and utilities ramped up production sharply in November, according to a Federal Reserve report released on Tuesday showing further signs of a manufacturing recovery.
The Fed said U.S. industrial production advanced 0.9 percent, its biggest monthly gain in four years. Output in the factory sector, which alone accounts for more than four-fifths of total industrial production, also posted a 0.9 percent gain. U.S. industries also operated at 75.7 percent of full capacity, their fastest pace since September 2002.
Both figures were well above Wall Street expectations for a 0.5 percent gain in production and 75.3 percent capacity use rate.
October production figures also were revised upward in the report, to a 0.4 percent increase from the initially reported 0.2 percent gain. Capacity in use was revised to 75.1 percent from a previously reported 75.0 percent.
Tuesday's data follow on the heels of other reports showing embattled U.S. manufacturers, hit hard by the 2001 recession and slack business investment afterward, is on the rebound. On Monday, the Federal Reserve Bank (News - Websites) of New York said its monthly index of state business conditions eased to 37.4 in December from the record high of 40.1 in November.
Aside from the manufacturing gain, the Fed said mining output rose 0.6 percent in November while utilities production gained 1.4 percent.
November's factory figures showed gains in a wide variety of sectors, as production of durable goods - those meant to last three years or more - rose 1.4 percent. Unlike some gains in previous months, November's advance came despite a slowdown in auto production. Auto assemblies fell to a 12.06 million annual rate in November from October's 12.16 million pace.
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