(RTTNews) - With motor vehicle production rebounding, the Federal Reserve released a report on Tuesday showing that industrial production increased by more than expected in the month of November. The report also showed an increase in the capacity utilization rate.
he Federal Reserve said that industrial production increased by 0.8 percent in November after revised data showed that production was unchanged in October. Economists had been expecting production to increase by 0.5 percent compared to the 0.1 percent increase originally reported for the previous month.
T A rebound in manufacturing production contributed to the stronger than expected growth, with production in the manufacturing sector increasing by 1.1 percent in November following a revised 0.2 percent decrease in the previous month.
turing has been a key factor in the GDP improvement we saw in Q3 and will likely see in Q4 and this data confirms that belief as companies either slowThe turnaround was partly due to a rebound in motor vehicle production, which rose by 1.8 percent in November after falling by 1.8 percent in October. Peter Boockvar, equity strategist for Miller Tabak, said, "The improvement in manufa
c down their inventory drawdowns or actually start to replenish them again." "This of course doesn't answer the question of what end demand will look like as we enter 2010 but the answer when it comes will determine how sustainable the improvement in industrial production will be," he added.
hat the capacity utilization rate rose to 71.3 percent in November from a revised 70.6 percent in the previous month. With the increase, the capacity utilization rate came in slightly above economist estimates of 71.1 percent. Capacity utilization in tWhile the report also showed a 2.1 percent increase in mining production in November following a 0.2 percent decrease in October, utility output fell by 1.8 percent after rising by 1.7 percent in the previous month due to unseasonably mild temperatures. Additionally, the Federal Reserve said
the manufacturing and mining sectors rose to 68.4 percent and 85.2 percent, respectively, while capacity utilization in the utilities sector fell to 77.9 percent.