U.S. industrial production grew more than expected in November, recording its biggest increase in more than two years, as manufacturing output rebounded following a strike by workers at General Motors Co. latest data from the Federal Reserve showed.
Seasonally adjusted industrial production rose 1.1% month over month in November after a revised 0.9% decline in the previous month. That was the largest gain since a 1.5% increase in October 2017.
Manufacturing output gained 1.1% after a revised 0.7% drop in the previous month, as a 12.4% jump in the production of motor vehicles and parts contributed to a 2.2% increase in the output of durable goods.
The consensus estimate of economists polled by Econoday was for a gain of 0.9% in industrial production in November. Manufacturing output was projected to increase 0.7%.
The strong rebound in industrial production was mostly due to the ending of the GM auto workers' strike, according to James Knightley, chief international economist at ING Economics. United Auto Workers members ratified a new four-year contract with GM in late October, ending the longest automotive strike in 50 years.
Mining output declined 0.2% after October's 0.8% fall, while the index for utilities advanced 2.9%, rebounding from a 2.4% decrease in the previous month.
Year over year, industrial production was down 0.8% in November.
Industrial capacity utilization gained 0.7 percentage point in November to 77.3%, a rate that is 2.5 percentage points lower than its long-run average.