U.S. Industrial Production Rises Due To Strong Manufacturing Growth

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Meanwhile, here are the major economic headlines from the last week:

• S. industrial production increased 0.2 percent in November due mostly to the fact that manufacturing output rose 0.3 percent. The increase in manufacturing output was driven by a 7.1 percent bounceback in motor vehicles and parts production that resulted from the resolution of strikes at several major automakers. Output at utilities fell 0.4 percent while the output of mines moved up 0.3 percent. Total industrial production in November was 0.4 percent below its year-earlier level. Read more here.
• Canadian manufacturing sales fell 2.8 percent to $71 billion, due in large part to drops in petroleum and coal product sales (down 10.3 percent) and in the machinery and computer and electronic product subsectors (down 6.6 percent and 15 percent, respectively).
• Canadian wholesale sales fell 0.5 percent in October from C$81.71 billion the month before and were down 2.1 percent from October 2022 to October 2023. Read more here.
• U.S. inventories fell 0.1 percent from September 2023 to October 2023, but rose 0.6 percent from October 2022 to October 2023. Wholesale inventories fell 0.4 percent and manufacturing inventories increased 0.1 percent. Retail stocks declined 0.1 percent.
• The Federal Reserve Bank of New York’s manufacturing index fell to a four-month low of -14.5 in December. New orders declined for a third straight month while shipments, unfilled orders, and employment also fell. Read more here.
• U.S. import prices fell 0.4 percent in November following a 0.6-percent drop the previous month. Lower fuel prices were more than offset an increase in nonfuel prices. Additionally, U.S. export prices declined 0.9 percent for the second consecutive month.
• The number of people who filed for U.S. federal unemployment benefits or the first time fell by 19,000 to 202,000 during the week that ended December 9. The four-week moving average of first-time claims also declined. The number of people who continued to file for benefits rose, meanwhile, to 1.876 million for the week that ended December 2. The four-week moving average of continuing claims also increased.
• Small business owners remained optimistic about their own businesses even though their confidence in the overall U.S. economy diminished, according to the latest MetLife and U.S. Chamber of Commerce Small Business Index. About two-thirds (64 percent) of owners said their businesses were in good health and 67 percent said they were comfortable with their cash flow, but just 25 percent rated the U.S. economy as good. Read more here.
• In other economic news: Employer costs for employee compensation for civilian U.S. workers averaged $43.93 per hour worked in September 2023 while wages and salaries averaged $30.35 and benefit costs averaged $13.58; U.S. producer prices were flat between October 2023 and November 2023, but rose 0.9 percent between November 2022 and November 2023; U.S. consumer prices increased 0.1 percent between October and November and was up 3.1 percent year-over-year.