US industrial production edges higher in December

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AFPLast Updated: Jan 17, 2024, 09:47:00 PM IST

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US industrial production beat expectations to increase slightly in December, fueled by growth in manufacturing and mining, the Federal Reserve said Wednesday. On an annual basis, industrial production expanded by 1.0 percent in the year to December 2023, boosted by mining and manufacturing, the Fed said.

US industrial production beat expectations to increase slightly in December, fueled by growth in manufacturing and mining, the Federal Reserve said Wednesday.

Production rose by 0.1 percent in December, up slightly from November, when revised figures now indicate no growth, the US central bank announced in a statement.

The December figure was above the market expectations of a slight contraction, according to Briefing.com.

The increase was attributable to a rise in manufacturing and mining, which acted to counteract a sharp drop in the output of utilities.

"The small gain in manufacturing output is largely due to a 1.6% increase in auto production," Pantheon Macroeconomics senior US economist Kieran Clancy wrote in a note to clients.

He said the increase in auto production came after the end of a major auto workers strike at Ford, General Motors and Stellantis in late October, adding that production remained "still slightly below its pre-strike trend."

"The upshot is that manufacturing remains in rough shape, and we see few signs of a material improvement ahead," he said.

On an annual basis, industrial production expanded by 1.0 percent in the year to December 2023, boosted by mining and manufacturing, the Fed said.

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