United States: automotive production drove industry growth

The United States factory production recovered in November and reflected a rebound in activity of automobile manufacturers and spare parts suppliers after the end of the United Auto Workers union strike.

The production rose 0.3% last monthbelow estimates, driven by a 7.1% increase in motor vehicle production, according to data from the Federal Reserve. The figures followed a 0.8% drop in factory output in October.

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However, Excluding automobiles, the manufacturing sector fell 0.2%. Total industrial production, which includes the mining and utilities sectors, rose 0.2%.

Industry in the United States on the rise after union strike

The resolution of the United Auto Workers union strike against the big three Detroit automakers benefited factory activity in November, since a drop in the production of companies and their suppliers recovered in October. However, the manufacturing sector as a whole continues to struggle under the weight of high borrowing costs.

Compared to November 2022, manufacturing production fell 0.8%.

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Factory capacity utilization, an indicator of potential production being used, increased slightly from the previous month but remained moderate. The annualized rate of automobile assemblies recovered to 10.25 millionbut remains below pre-strike levels.

Excluding autos, the report showed weakness. Factories that produce clothing, paper and textiles experienced drops in production. Some categories, such as machinery and the computer and electronics sector, grew.

Translated by Bárbara Briceño.

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