Factory output eclipses pre-recession high

U.S. manufacturing output in November surpassed its pre-recession peak, as auto production kicked into a higher gear.

The Federal Reserve said today that factory production rose 1.1 percent last month, up from a 0.4 percent improvement in October. Manufacturing output has risen 4.8 percent over the past 12 months. It's now above the previous high set just before the downturn began in December 2007.

Total industrial production grew 1.1 percent in November, rising in part as utilities faced additional demand because of colder-than-usual weather. Mining production slid 0.1 percent last month.

The growth points to a U.S. manufacturing base that has been insulated from a turbulent global economy. Japan has slipped into recession. Tepid growth has trapped much of Europe. China, the world's industrial behemoth, is trying to tighten credit and reform its opaque financial sector. The rising value of the dollar against other currencies makes U.S. products more expensive abroad, meaning that U.S. manufacturers will likely need to rely on domestic demand for growth. (full article...)

Associated Press, Monday, December 15, 2014