Electronics boost November manufacturing
Industrial production in the United States increased more than forecast in November, helped by gains in computers, home electronics and appliances, signaling that factories will support economic growth into next year, Bloomberg reported.
Output at factories, mines and utilities rose 0.4 percent, the biggest gain since July, after a revised 0.2 percent drop in October, according to figures from the Federal Reserve released today.
Economists had forecast a 0.3 percent gain, according to the median of 75 projections in a Bloomberg News survey. Manufacturing rose 0.3 percent for a second straight month.
Assembly lines are speeding up as business investment and exports grow and consumer spending accelerates. Manufacturing will continue to play a role in the economic recovery, which Fed policy-makers yesterday said was not strong enough to reduce a jobless rate that has been hovering near 10 percent.
“The industrial side of the economy seems to be picking up in response to the improvement in consumer spending and ongoing business investment,” Sal Guatieri, a senior economist at BMO Capital Markets in Toronto, said prior to the report’s release. “It looks like exports are coming back. Everything is moving in the right direction for U.S. manufacturers.”
Economists’ estimates ranged from a decrease of 0.1 percent to a gain of 0.8 percent.