Industrial production in the U.S. increased by much more than anticipated in the month of November, according to a report released by the Federal Reserve on Friday, with the increase reflecting a recovery in production for industries that were negatively affected by Hurricane Sandy.
The report said industrial production surged up by 1.1 percent in November after falling by a downwardly revised 0.7 percent in October. Economists had expected production to increase by 0.3 percent compared to the 0.4 percent drop originally reported for the previous month.
The bigger than expected increase in production was partly due to a notable rebound by manufacturing output, which jumped 1.1 percent in November after tumbling 1.0 percent in October.
Along with the storm-related rebound, the Fed said the manufacturing sector benefited from a sizable rise in the production of motor vehicles and parts.
Utilities output also rose by 1.0 percent in November after coming in unchanged in October, while mining output climbed 0.8 percent after edging up by 0.3 percent in the previous month.
Additionally, the report showed that the rate of capacity utilization climbed to 78.4 percent in November from a revised 77.7 percent in October.
The capacity utilization rate had been expected to inch up to 78.0 percent in November from 77.8 percent originally reported for the previous month.
Capacity utilization in the manufacturing sector rose to 76.6 percent from 75.9 percent, while capacity utilization in the utilities and mining sectors climbed to 75.3 percent and 91.1 percent, respectively.
by RTT Staff Writer
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