WASHINGTON – US industrial production continued to recover in November, driven in part by a jump in auto manufacturing, but the sector remains far below last year’s level, the Federal Reserve reported today.
Total output increased 0.4% last month compared to October, but remains 5.5% lower than November 2019 as industry continues to try to replace production impacted by the world’s worst Covid-19 outbreak.
Factories have been recovering steadily since May, except for a very small dip in September, according to the Fed data.
Manufacturing last month rose 0.8% – its seventh consecutive gain – boosted by a 5.3% jump in motor vehicles and parts. Without that surge, factory output would have increased only 0.4%, the report said.
Oren Klachkin of Oxford Economics said the gains were “not overly impressive” and the outlook is not entirely positive amid the pandemic, although the vaccine rollout offers hope for next year.
“The slowing jobs recovery will weigh on consumer demand for goods and while more fiscal aid from Congress may arrive soon, it’ll likely be less stimulative than the first support package,” he said in an analysis, referring to the efforts in Washington to provide a new relief package to restore aid to businesses and families.
The data showed mining rose 2.3%, including an 8.3% jump in oil and gas well drilling.
But utilities output fell 4.3% as unseasonably warm weather cooled the demand for heating.
Installed capacity in use rose to 73.3% from 73.0%, recovering back to the level of a year ago, the Fed said. – AFP, December 15, 2020
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