Industrial production in the USA grew by 0.9 percent in December, performing beyond expectations. While market expectations were for an increase of 0.2-0.3 percent, the announced data pointed to a strong recovery in the economy. Industrial production, which decreased by 0.1 percent in November, rose in December, surpassing economists’ forecasts.
Capacity utilization rate exceeded expectations
The capacity utilization rate in December was 77.6 percent, exceeding the market expectation of 77 percent. The capacity utilization rate for November was revised from 76.8 percent to 77 percent. This increase shows that industrial facilities are starting to use their production capacities more efficiently.
The manufacturing sector showed a strong performance
US manufacturing sector production increased by 0.6 percent in December. This increase was well above the market expectation of 0.2 percent. The manufacturing sector production increase, which was previously announced as 0.2 percent for November, was also revised upwards to 0.4 percent. Excluding automobiles and parts, industrial production increased by 1 percent compared to November.
Increase from consumer goods to business equipment
There was an increase in production in most market groups in December. While the production of consumer goods increased by 0.5 percent, the production of non-durable consumer goods grew by 0.7 percent with the support of the 1.9 percent increase in the energy index. Although the production of durable consumer goods decreased, the strong increase in non-durable goods offset this loss.
Construction equipment production increased by 1.4 percent, thanks to the strong increase in civil aircraft production.
Construction and work materials production grew by 0.9 percent. The material index increased by 1.2 percent, strengthening its growth dynamics. The production increase was seen in all subcategories except for a 1.4 percent decline in consumer parts.
Positive signals for the economy
The strong increase in industrial production and the increase in capacity utilization show that the US economy accelerated its recovery process in the fourth quarter. Broad-based growth in different sectors such as energy, manufacturing and construction equipment increases confidence in the economy and gives positive signals for 2025.
Source: www.dunya.com
