US industrial production hit pandemic high in November: Fed

WASHINGTON: The US industrial production climbed in November to its highest level since the Covid-19 pandemic began, the Federal Reserve said on Thursday.

The 0.5 per cent overall gain in the month was less than expected but brought the index to its highest level since September 2019, and 5.3 per cent above its level in November 2020, according to the report.

Mining and manufacturing each posted 0.7 per cent gains, while utilities fell 0.8 per cent, the central bank data said.

There was solid growth in big-ticket manufactured goods production last month, and motor vehicles and parts made up a large part of that, according to the report, indicating the sector is working its way through the semiconductor shortage that hobbled production in recent months.

However, auto and parts production was 5.4 per cent below where it was a year ago.

Ian Shepherdson of Pantheon Macroeconomics said the data boded well for American manufacturers.

“The industrial recovery continues, and business surveys point clearly to further gains over the next few months,” he said in an analysis.