U.S Industrial Output Increases 0.2% in November

U.S. industrial production rose less than expected in November as a drop in utilities output offset a post-hurricane rebound in the oil and gas industries and the third consecutive monthly advance for manufacturing, the Federal Reserve said on Friday.

Overall industrial output rose 0.2 percent following an upwardly revised 1.2 percent gain in October.

Economists polled by Reuters had forecast industrial output rising 0.3 percent last month. The U.S. central bank’s measure of the industrial sector is comprised of manufacturing, mining, and electric and gas utilities.

Output in the mining sector registered a 2 percent gain as oil and gas extraction “returned to normal levels” after the impact of Hurricane Nate in October, the Fed said.

The manufacturing sector, which makes up about 12 percent of the nation’s economy, rose 0.2 percent last month following an upwardly revised 1.4 percent gain in October.

Output in the utilities sector, however, fell 1.9 percent on weak output among electricity providers.

The percentage of industrial capacity in use rose slightly to 77.1 percent in November from an unrevised 77.0 percent in October. The November figure was 2.8 percentage points below the long-run average from 1972 to 2016.

Reuters

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at nagribah
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.