New data released December 17th by the Federal Reserve finds U.S. industrial production rebounded in November following two straight months of declines.
The Federal Reserve’s latest release on U.S. industrial production and capacity found industrial output surged 1.1% in November, following a 0.8% decline in October and a 0.3% decline in September.
The end of the UAW strike accounted for a large proportion of the recovery in manufacturing output, with a sharp 12.4% increase in motor vehicle production.
Durable Goods Leads Gains
The 12.4% recovery in motor vehicle production sent output in the durable goods category soaring 2.2% in November.
However, the auto industry was not the only to post output gains in November. Additional industries reporting an increase in production included primary metals (+2.9%); and computer & electronic products (+1.4%).
Related: New Manufacturing Plants Announced in November
In the nondurable goods category, output was little changed, up just 0.1%. Within the nondurable goods category, most industries posted marginal changes in production.
Plastics & rubber led gains in the durable goods category, with output up 1.1%. Food products output rose 0.8%, while textile and product mills edged up 0.7%.
Production in apparel and leather sank 1.6%, while printing & related support activities declined 1.4%. Production in all other durable goods categories remained flat.
Mining & Utilities Output Mixed
Output in mining declined 0.2% in November, in line with a general downward trend for the sector in recent months.
Following a sharp increase in production at the start of the year, mining output has been little changed in the latter half of 2019. On a year-over-year basis, however, mining output has increased 2% compared to this time last year.
Output in utilities rebounded in November, up 2.9%, following a decline of the same in October. Year-over-year, utilities output has decreased 1.4% compared to November 2018.
Capacity Utilization Up, But Still Below Average
Manufacturing capacity utilization, which measures the degree to which manufacturing companies make use of their productive capacity, rose 0.7% in November to a current level of 75.2%.
This is 3.1% lower than the long-run average for manufacturing capacity utilization, according to the Fed.
12-Month Look
On a year-over-year basis, the Fed reports manufacturing output has fallen 0.8%, measured from November 2018 to November 2019. Looking over the twelve-month period, computer & electronic products fared the best, with output up 7.2% over the year.
Other industries increasing production in included wood products, which rose by 2.8% and non-metallic mineral products, up 1.5%.
Still, these gains were not enough to offset a 6% decline in machinery output, as well as notable output declines in primary metals, fabricated metals products, and furniture.
The non-durable goods category saw a 1.1% decline in output over twelve months, led by a sharp 9.5% decline in apparel.
Most other categories posted notable drops in production over the year, including textile mills, paper products, chemicals, plastics, and petroleum products.
Food processing was the only non-durable goods category to register an increase in production in 2019, up 2.2%.
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