US Manufacturing Output Surges in December

U.S. manufacturing output increased by the most in 10 months in December, boosted by a surge in the production of motor vehicles and a range of other goods, which could allay fears of a sharp slowdown in factory activity.

The Federal Reserve said on Friday manufacturing production jumped 1.1 percent last month, the biggest gain since February. Data for November was revised slightly up to show output at factories gaining 0.1 percent instead of being unchanged as previously reported.

Economists polled by Reuters had forecast manufacturing output rising 0.3 percent in December. Production at factories increased at a 2.3 percent annualized rate in the fourth quarter after expanding at a 3.7 percent pace in the July-September period.

Last month’s surge in manufacturing production is unlikely to be sustained after a report earlier this month showed a measure of new orders received by factories tumbling in December to its lowest level since August 2016.

via CNBC

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