Manufacturing Output Climbed 4.8 Percent Year To Year
U.S. manufacturing output in November finally surpassed its pre-recession peak, as auto production continues to thrive late in the year. The Federal Reserve said Monday that factory production rose 1.1 percent last month, up from a 0.4 percent improvement in October. Manufacturing output has risen 4.8 percent over the past 12 months. It’s now above the previous high set just before the downturn began in December 2007.
November was a huge month for factory production, the largest increase in 9 months. Production increased across the board, a sign of stability and needed foundation in the U.S. economy. Analyst expected a growth of only 0.5 percent due to the 0.2 percent gain back in October.
Strong domestic sales helped boost auto production up to 5.1 percent last month. Motor vehicles sold in November at an annualized clip of $17.2 million, a 4.6 percent increase from the year before, according to Autodata Corp. The surge in production snapped three previous months of declining auto output as analyst breathe a sign of relief.
U.S. factory orders were down for a 3rd consecutive month in October. Total orders dropped 0.7 percent in October, indicating that factory activity may slow in the coming months ahead. However, factory orders may even be weaker then first thought. If it wasn’t for a 21.2 percent jump in military-based orders, numbers would have been really bad.
Utility production saw a sharp incline to 5.1 percent. The gain in manufacturing and utilities combined to lift overall industrial production by 1.3 percent in November, the largest gain since May 2010. October’s industrial output was revised to show a 0.1 percent increase instead of the previously reported 0.1 percent loss.
The amount of manufacturing capacity in use rose to 78.4 percent last month from 77.6 percent in October. Overall industrial capacity use increased to 80.1 percent, the highest since March 2008, from 79.3 percent in October. In total for the year, manufacturing has added 165,000 jobs. While global economies continue to struggle, here in the United States, we continue to see growth.