U.S. Industrial Output Moderates After Storm-Related ReboundBy
U.S. industrial production rose at a slower pace in November as factory output moderated following the biggest advance in more than seven years that reflected a hurricane-related surge, Federal Reserve data showed Friday.
Highlights of Industrial Production (November)
Three straight months of increased factory output show that manufacturing remains on solid ground amid steady consumer spending and strong gains in business investment. An improvement in overseas markets may also boost export demand in coming months.
The latest advance in manufacturing production reflected a widespread increase in the output of durable goods, driven by primary metals. In a sign factories are putting more resources to use, capacity utilization at manufacturers climbed to 76.4 percent, the highest since May 2008.
Total industrial production was driven by a 3 percent increase in oil and gas extraction as activity returned to normal levels following Hurricane Nate, the Fed said. Excluding the rebound in energy extraction, total industrial output would have been unchanged.
- Utility output fell 1.9 percent after rising 2 percent the prior month
- Mining production increased 2 percent after a 0.6 percent decrease
- Production of motor vehicles cooled to a 0.1 percent increase after three months of solid gains
- Production of business equipment rose 0.5 percent in November, while output of construction supplies climbed 0.6 percent
- Consumer goods output dropped 0.4 percent after a 1.2 percent surge
- Production of primary metals increased 1.7 percent, the third gain in the last four months
— With assistance by Jordan Yadoo