A statement issued by the US Central Bank said that industrial production rose by 0.1 percent in December compared to November, during which no growth was recorded after reviewing its numbers.
December's numbers were higher than market expectations of a slight contraction, according to the “Breaking.com” website.
This rise was attributed to an increase in manufacturing and mining in the face of a sharp decline in the production of services and utilities.
“The small gains in industrial production are largely due to a 1.6 percent increase in automobile production,” Kieran Clancy, chief US economist at Pantheon Macroeconomics, wrote in a note to clients.
He added that the increase in car production came after the end of a major labor strike in late October at Ford, General Motors, and Stellantis, noting that production “is still slightly lower than pre-strike levels.”
He pointed out, “The general conclusion is that manufacturing is still in a difficult situation, and we see only a few signs of fundamental improvement in the future.”
The Federal Reserve announced that industrial production expanded by 1.0 percent on an annual basis until December 2023, supported by mining and manufacturing.
#industrial #production #recorded #slight #increase #December
