WASHINGTON, Dec 23 (Reuters) - U.S. factory production was unchanged in November after declining in October as motor vehicle output fell following the expiration of tax credits for electrical vehicles.
The flat reading in manufacturing output last month followed a 0.4% drop in October, the Federal Reserve said on Tuesday. Economists polled by Reuters had forecast production for the sector, which accounts for 10.1% of the economy, would be unchanged.
Production at factories rose 1.9% on a year-over-year basis in November. The release of the data was delayed by the 43-day shutdown of the federal government. Motor vehicle production eased 1.0% after declining by 5.1% in October. Motor vehicle sales surged in the third quarter as consumers rushed to purchase electric vehicles before the September 30 expiration of tax credits.
Excluding motor vehicle production, factory output edged up 0.1% in November after dipping 0.1% in the prior month.
Manufacturing has been treading water as President Donald Trump's sweeping tariffs weigh on factories that depend on imported materials, but boost segments like primary metals that faced stiff foreign competition. Trump has defended the duties as necessary to revive a long-declining U.S. industrial base, but a broad improvement has yet to materialize, with factory employment down by about 63,000 jobs so far this year.
Mining output rose 1.7%. That rise followed a 0.8% drop in October. Overall industrial production increased 0.2% after slipping 0.1% in October. Industrial output advanced 2.5% on a year-over-year basis in November.
Reporting by Lucia Mutikani; Editing by Paul Simao
Source: Reuters