Sunday, March 29th12.9°C
25490
25263

US factory output rises 0.4 pct. in December, led by autos, appliances, food and tobacco

WASHINGTON - U.S. factory output rose for a fifth straight month in December, as manufacturers cranked out more cars and trucks, appliances and processed food. The gains suggest factories gave economic growth a strong boost at the end of the year.

The Federal Reserve said Friday that factory production rose 0.4 per cent in December. That follows gains of 0.6 per cent in both November and October. Automakers increased their production 1.8 per cent last month and 10.4 per cent year over year.

Higher consumer demand is driving much of the increased manufacturing activity. Production of appliances, furniture, carpeting, food and clothing all grew in December. Output of consumer goods gained 0.5 per cent.

Overall industrial production, which includes manufacturing, mining and utilities, increased 0.3 per cent in December. That's also the fifth straight monthly gain.

Total production increased 3.7 per cent over the last 12 months and has surpassed its pre-recession peak. Output is now 22 per cent above its recession low hit in June 2009, the month the downturn ended.

Other indicators point to continued manufacturing strength. Factory orders climbed 1.8 per cent in November. A surge in aircraft demand led the increase in orders, while businesses stepped up spending on machinery, computers and other long-lasting goods.

And despite a slowdown in hiring last month across the broader economy, factories added jobs for the fifth straight month in December.

Rising factory orders should help keep economic growth solid in the October-December quarter. Several economists project growth at a 3 per cent annual rate in that period after a 4.1 per cent rate in the previous quarter.

There are signs that the rate of growth for factory production could slow.

Automakers drove much of the improvement in industrial production through the end of last year, as motor vehicle sales jumped 8 per cent to 15.6 million last year.

However, many industry analysts expect the pace of buying to decline in 2014. Cars and trucks are lasting longer and families are unlikely to splurge on extra vehicles until the economy kicks into higher gear. That could signal slower growth in factory output in the coming months.

Overall economic growth remains modest by historical standards. And though factory orders have strengthened in recent months, the rate of growth has slowed during the recovery from the 2008 financial crisis.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14812.42-57.38
S&P CDNX681.43+1.87
DJIA17712.66+34.43
Nasdaq4891.22+27.86
S&P 5002061.02+4.87
CDN Dollar0.7939+0.0011
Gold1196.30-8.80
Oil48.87-3.00
Lumber282.60-3.60
Natural Gas2.62-0.05

 
Okanagan Companies
Pacific Safety0.125-0.005
Knighthawk0.010.00
QHR Technologies Inc1.50+0.00
Cantex0.03-0.01
Anavex Life Sciences0.219+0.009
Metalex Ventures0.04-0.01
Russel Metals24.50-0.18
Copper Mountain Mining1.13+0.00
Colorado Resources0.125+0.010
ReliaBrand Inc0.006-0.001
Sunrise Resources Ltd0.045+0.000
Mission Ready Services0.255+0.020
Decisive Dividend Corporation1.80+0.02

 





FEATURED Property
2153306809 Finns Road
$1,250,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


CRA Notice of Assessment

Many Canadians rush to file their taxes on time each year and don’t think about it until the next year. One of the most overlooked notices received from the CRA annually is the annual Notice of ...


Medical confidential?

If ICBC asks your doctor for your information you may wonder: Can ICBC ask my doctor for my medical information? Can ICBC request a medical report from my doctor without my consent? What is ICBC entit...


Stay out of sales limbo!

Have you ever had a series of good meetings with a prospect … gathered all kinds of information … and given what you thought was a great presentation … only to receive a response ...

_








Member of BC Press Council


25534