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The numbers: Industrial production rose 0.5% in November, the Federal Reserve reported Thursday, led by strong gains in manufacturing and mining – which includes oil production.
The gain was above Wall Street expectations of a 0.6% gain, according to a survey by The Wall Street Journal.
Capacity utilization rose to 76.8% in November from 76.5% in the prior month, the Fed said. The gain was in line with expectations. The capacity utilization rate reflects the limits to operating the nation’s factories, mines and utilities. The November level is the strongest since before the pandemic.
Key details: Gains in output were widespread, the Fed said.
Manufacturing rose 0.7% in November after a 1.4% gain in the prior month. It is now at its highest level since January 2019.
Motor vehicles and parts output rose 2.2% after a 10.1% jump in the prior month. Excluding autos, total industrial output increased 0.4%. Motor vehicle assemblies were the highest since May but still well below pre-pandemic levels. Production in autos is down 5.4% from its year-earlier level.
Utilities output fell 0.8% in November as warm weather kept thermostats low across the country. Mining output, which includes oil and natural gas, rose 0.7% after a 4.3% gain in the prior month.
Big picture: Manufacturing has been a bright spot in the economy despite headwinds from supply constraints. Over the past year, manufacturing has risen at a 5.3% annual rate and is at its highest reading since September 2019.
Market reaction: U.S. stocks
DJIA,
SPX,
headed modestly higher on Thursday, extending the rally that was seen after a Federal Reserve policy decision on Wednesday and putting the S&P 500 index within range of a record high close.
