U.S. Industrial Production Rises, But Manufacturing Readings Mixed

Connecting the Dots monitors all major economic announcements in the United States and Canada, but the Metals Service Center Institute also offers industrial metals industry-specific data products that provide much deeper analysis and insight. Visit MSCI’s website and click on industry data to learn more about our Metals Activity Report (MAR), Momentum Monitors, and Macroeconomic Current.

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

• U.S. industrial production increased 0.9 percent in December after moving up 0.2 percent in November. In December, gains in the output of aircraft and parts contributed 0.2 percentage point to total growth following the resolution of a work stoppage at a major aircraft manufacturer. Manufacturing output rose 0.6 percent last month while the indexes for mining and utilities climbed 1.8 percent and 2.1 percent, respectively. At 103.2 percent, total industrial production in December was 0.5 percent above its level from the year before. Read more at this link.
• Statistics Canada reported that, after rising 2.1 percent in October, total manufacturing sales in the country continued to improve, advancing 0.8 percent to $71.5 billion in November due to higher sales in 13 of 21 subsectors. The aerospace product and parts industry group and the petroleum and coal product subsector led the gains while sales of motor vehicle parts posted the largest decline. Between November 2023 and November 2024, total manufacturing sales fell 0.4 percent.
• In the United States, the combined value of distributive trade sales and manufacturers’ shipments for November was up 0.5 percent from October 2024 and 2.5 percent from November 2023. Inventories were up 0.1 percent for the month and 2.6 percent year-over-year. The total business inventories-to-sales ratio at the end of November was 1.37, the same as November 2023.
• Regional manufacturing readings in the United States have been mixed so far in January. Last week, the Federal Reserve Bank of Philadelphia announced its general activity index rose to -10.9 in December to +44.3 in January, its highest reading since April 2021 and the largest monthly increase since June 2020. The new orders index expanded an incredible 47 points to hit +42.9, its highest reading since November 2021, and the shipments index increased 39 points to +41.0, setting its highest mark since October 2020. Unfortunately, in contrast, the Federal Reserve Bank of New York said its Empire State’s manufacturing sector weakened in January. Specifically, the bank’s general business activity index fell 15 points to -12.6, signaling a sharp decline in business activity. New orders and shipments also fell into negative territory after positive readings in December, but the employment index did improve and 53 percent of respondents said they expect conditions to improve over the next six months.
• The number of new homes under construction in the United States was up 15.8 percent between November 2024 and December 2024, but fell 4.4 percent year-over-year.
• The number of people who applied for U.S. unemployment benefits for the first time stood at 217,000 during the week that ended Jan. 11, a figure that was up by 14,000 from the week before. Averaged over the past four weeks, first-time claims fell to 212,750. In all, nearly 1.859 million people claimed jobless benefits during the week that ended Jan. 4, a number that was down by 18,000 from the week before.
• S. import prices advanced 0.1 percent in December due to higher fuel and nonfuel prices in December. Prices for U.S. exports increased 0.3 percent in December, after being unchanged the previous month. Read the full report at this link.
• In other economic news, inflation continues to nag the U.S. economy. The U.S. producer price index rose 2.2 percent from November to December and 3.3 percent for all of 2024 while the consumer price index was up 0.4 percent for the year and 2.9 percent for the prior 12 months. Meanwhile, real average hourly earnings for U.S. employees rose 0.2 percent from November to December.