US manufacturing output beats November estimates as car factories continue to shine through the pandemic
US factory outputrose more than expected in November, largely buoyed by strong auto manufacturing. Manufacturing outputclimbed 0.8% last month, according to Federal Reserve data. Economists surveyed by Bloomberg expected a 0.4% gain.
- Motor vehicle and part production leaped 5.3% in November, marking the first monthly gain since July. The industry counted for roughly half of overall output growth last month, according to the Fed.
- Manufacturing activity has largely held up better than the service industry as COVID-19 cases climb to record highs and cities re-enter partial lockdowns.
Manufacturing output rose 0.8% last month, according to Federal Reserve data published Tuesday. Economists surveyed by Bloomberg expected a 0.4% climb. Industrial production grew 0.4% and now sits roughly 5% below its pre-pandemic highs.
Motor vehicle and part production leaped 5.3% through November, marking its first month of growth since July. Auto manufacturing and sales fueled strong economic growth through the summer before slowing modestly into the fall. The industry counted for roughly half of overall output growth in November.
Paper and aerospace manufacturing also grew at healthy rates last month. Utilities output slowed as warmer-than-usual temperatures cut into heating demand, according to the Fed.
"The recovery in overall industrial production and manufacturing output specifically have been partial, even though there has been strong growth reported in recent months," Daniel Silver, an economist at JPMorgan, said.
Factories are also seemingly more insulated from rising COVID-19 cases. The US reported 193,384 new cases on Monday, according to The COVID Tracking Project. The prolonged climb in cases and virus hospitalizations has prompted several state and city governments to reinstate lockdown measures. Such policies have slammed service industries, but the Tuesday Fed data suggest manufacturing is holding up well through the pandemic's latest wave.
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