U.S. Industrial Production Rose 0.2% in November
16 December 2017 - 1:45AM
Dow Jones News
By Sarah Chaney and Ben Leubsdorf
WASHINGTON--U.S. industrial production rose in November, boosted
by a post-hurricane recovery in oil and gas extraction.
Industrial production--a measure of output at factories, mines
and utilities--rose a seasonally adjusted 0.2% in November from the
prior month, the Federal Reserve said Friday.
Economists surveyed by The Wall Street Journal had expected the
index to rise 0.3%. October industrial production was revised up to
a 1.2% gain from an initial estimate of a 0.9% increase.
From a year earlier, industrial production rose 3.4% in
November.
Friday's report showed output in the volatile mining sector
jumped 2.0% in November, aided by a gain in oil and gas extraction
that the Fed said "returned to normal levels after being held down
in October by Hurricane Nate." Without this rebound, industrial
production would have remained flat last month, the Fed noted.
Manufacturing output, the biggest component of industrial
production, rose 0.2% in November, a sharp slowdown from October's
1.4% increase.
Capacity utilization, a measure of slack in the industrial
economy, increased 0.1 percentage point to 77.1% in November.
Economists had expected capacity utilization of 77.2% in
November.
U.S. manufacturing activity has picked up steam this year
because of a weaker dollar, more-stable oil prices and global
economic growth.
The Institute for Supply Management said its closely watched
index of U.S. manufacturing activity remained solidly in a growth
mode in November.
Industrial production was knocked off course in recent months,
as hurricanes that battered the southern and eastern U.S. in the
late summer caused refineries and plants on the Gulf Coast to shut
down and stall other keys parts of the manufacturing process.
Manufacturing production bounced back in October, the Fed earlier
reported, and now energy extraction has returned to normal.
Utility output declined 1.9% in November from the prior month,
possibly reflecting lower heating demand as a result of
warmer-than-average temperatures.
The Federal Reserve's report on industrial production can be
found at:
https://www.federalreserve.gov/Releases/g17/current/default.htm.
Write to Sarah Chaney at sarah.chaney@wsj.com and Ben Leubsdorf
at ben.leubsdorf@wsj.com
(END) Dow Jones Newswires
December 15, 2017 09:30 ET (14:30 GMT)
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