MANUFACTURING output in the US hit its biggest gain in nine months in November, surpassing Wall Street’s 0.5 percent growth estimate for that month.

The overall industrial capacity used was at its highest in more than 6 ½ years, while the percentage of manufacturing capacity used in November climbed to its highest since December 2007, according to Reuters.

“This could be seen as an indication of accelerating resource slack absorption in the U.S. economy,” said Millan Mulraine, deputy head of US research and strategy at TD Securities in New York.

Factory production in the United States saw a 1.1 percent increase last month, following a 0.4 rise in October, the Federal Reserve said on Monday, Dec. 15.

Overall industry production rose 1.3 percent in the same month, marking the biggest climb since May 2010.

More positive employment figures and retail sales reports accompanied data indicating an increase in output.

Multiple industries reported boosts in production with the auto industry in the lead with a 5.1 percent rise following a slump that lasted three consecutive months.

Utilities production also rose 5.1 percent. Mining, however, dropped 0.1 percent.

Apparel and leather, machinery and petroleum and coal industries also experienced growths in production.

Reuters reported that despite positive figures, economists said the report was weak and pointed out that factory output in New York is limited. Furthermore, a New York Federal Reserve report indicated that the state’s general business conditions index shrunk in December.

Additionally, oil prices are at a 5 1/2-year low.

“With all the discussion about the impact of lower oil prices, it may feel like this miss is a warning that the factory sector is retrenching,” said Tim Quinlan, an economist at Wells Fargo Securities in Charlotte, North Carolina, according to Reuters.

(With reports from Reuters)

(www.asianjournal.com)
(LA Midweek December 17-19, 2014 Sec. B pg.1)