US industrial output falls short in November
By Alexander Bueso
Date: Tuesday 17 Dec 2024
(Sharecast News) - Industrial output in the US dropped unexpectedly last month, amid a downdraft in Mining and Utilities, whilst manufacturing staged a small bounce as the strike at Boeing ended.
According to the Department of Commerce, in seasonally adjusted terms total industrial production dipped at a month-on-month pace of 0.1% in November.
Economists had forecast a rise of 0.3%.
Factory production on the other hand expanded at a monthly clip of 0.2%, even as that in Mining and Utilities registered falls of 0.9% and 1.3%, respectively.
Nonetheless, gains in manufacturing production during the months of September and October were both revised lower by two tenths of a percentage point.
Indeed, factory output was left 1.0% below its year earlier level.
When compared with October, output of aircraft parts, apparel, petroleum products, paper as well as publishing and logging all fell, Commerce noted.
The degree of capacity utilisation meanwhile declined by two tenths of a percentage point to 76.8% (consensus: 77.3%).
"Warmer than usual weather weighed on industrial production via utilities production. In addition, mining output fell for a third consecutive month as oil producers contend with lower prices," commented Bernard Yaros, Lead US economist at Oxford Economics.
"The latest numbers will lead to a downward revision to the near-term forecast for industrial production. We still see a rebound next year thanks to reduced policy uncertainty and interest-rate relief. Secular growth in certain pockets of manufacturing will continue."
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